Europe's Luxury Giants Lose €250 Billion as China Demand Fades

Europes Luxury Giants Lose €250 Billion as China Demand Fades

Europe's six largest listed luxury companies have lost a combined €251 billion in market value this year as weaker Chinese demand hits sales and investor confidence, according to figures reported by the Financial Times. The slide marks a deepening of a multiyear downturn for an industry that once seemed unstoppable.

The steepest falls are at LVMH and Hermès, whose market values have dropped by €131.6 billion and €93.3 billion respectively, while Kering, Richemont, Prada and Moncler have also been caught in the slide. Recent results missed already lowered expectations: LVMH said sales to Chinese clients fell by a mid-teens percentage in its fashion and leather division, while Kering reported a 15 to 20 per cent drop in sales to Chinese consumers across the group.

The cause is China itself. A property slump and weak stock market have dented household spending, with monthly retail sales growth averaging less than 0.5 per cent over the past six months. Chinese shoppers powered luxury growth for more than a decade; now brands face a harder question — whether the slowdown is a pause, or a lasting shift in how China shops.

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