European luxury giants lose $350 billion in market value in 2024
European luxury goods firms have lost $350 billion in market value this year as hopes for sector recovery fade and weakness persists in China.
In 2024, European luxury brands have witnessed a staggering loss of $350 billion in market value due to fading recovery hopes and persistent struggles in the Chinese market. LVMH, the French fashion conglomerate, reported third-quarter sales that significantly underperformed expectations, particularly in its core fashion and leather goods segment. This development prompted a decline in luxury stocks at the close of trading on Tuesday.
The top ten European luxury firms, as measured by the Stoxx Europe Luxury 10 index, have collectively lost nearly $350 billion in market capitalization since the beginning of the year. This decline includes industry giants like LVMH, Hermès, Kering (owner of Gucci), and Richemont. Together, these four major players have seen their combined market value nearly halve in 2024.
Richemont, which specializes in watches and jewelry, stands out as the sole outlier among the top ten companies, experiencing a different market trajectory. The decline, primarily driven by LVMH, has led to a significant erosion of wealth for Bernard Arnault, the French CEO and owner of the luxury giant. Arnault's wealth has been reduced by billions of dollars, with shares in LVMH plummeting by over 40% this year.
The lagging performance of LVMH in contrast to its luxury rivals underscores the challenges faced by European luxury brands in a weakened Chinese market.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
