The $350 billion decline in European luxury
European luxury firms have experienced a drop in their total market value of around $350 billion this year. As expectations for a sector rebound diminished and weakness continued in China, the industry’s main growth driver.
This week, the French luxury brand LVMH announced third-quarter sales that underperformed expectations in its main fashion and leather goods sector, with China being a key factor in the decline. This influenced luxury sector stocks on Tuesday.
Here are five graphs depicting the decline in the luxury industry.
Top ten luxury firms in Europe listed in the STOXX Europe Luxury 10 index have seen a decline of almost $350 billion in market value since the start of the year.
The drop—driven by LVMH—has erased billions from the fortune of French CEO and owner Bernard Arnault, based on Forbes’ wealth-monitoring data.
The French firm owning fashion and leather brands like Louis Vuitton and Dior, jewelers Tiffany and Bulgari. Spirits labels Moët and Hennessy, has experienced a share decline of over 40% this year, lagging behind its luxury competitors.
China was a central point of attention. The vast Asian market, which was previously the engine of global luxury spending growth, has weakened due to a tougher economic climate.
