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European luxury brands lose $350 billion in value
The market value of the ten largest European luxury goods companies has declined by approximately $350 billion since the beginning of 2026, dropping to around $750 billion from over $1.1 trillion at the end of 2025. This decline is attributed to the sector's poor performance due to weak demand in the Chinese market, which was once one of the biggest drivers of global luxury spending. Additionally, the French group LVMH, owner of brands such as Louis Vuitton and Dior, announced that its shares have fallen by more than 40% since the start of the year, while other stocks like Hermès and Kering have also suffered. The collapse of the luxury market has led to a decrease in the wealth of major shareholders, especially billionaire Bernard Arnault, whose fortune has dropped from $278 billion in 2025 to approximately $170 billion in 2026—a decrease of nearly $108 billion. This decline is primarily due to the falling market capitalization of the group. The reduced demand in China, particularly with its share of global luxury spending decreasing from 47% in 2019 to 26% in 2025, is a main reason for the sector's downturn, despite the recovery of the US and European markets and the increasing share of consumers there.
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