Luxury Market Tracker — 2026-10-23
Hermès reported a 4.3% revenue increase in Q3 2026, marking a significant deceleration from its previous quarter's 6% growth, primarily due to challenging economic conditions in China and the Middle East. Consequently, European luxury giants, including Hermès and LVMH, are now trading at their lowest valuations in over a decade.
Luxury Market Tracker — 2026-10-23
Top Story
Hermès Q3 Deceleration Signals Prolonged Sector Slump
Hermès reported a 4.3% revenue increase for the third quarter of 2026, a notable slowdown from the 6% growth recorded in the previous quarter. While handbags and leather goods showed strong growth, the brand's overall sales missed forecasts due to a "challenging" economic backdrop in key markets like China and the Middle East. This deceleration has dashed investor hopes for an imminent end to the industry slump, contributing to a broader market trend where shares in Europe's biggest luxury firms are trading at their cheapest levels in more than a decade.
Market Movers
Kering — Q3 Sales Decline
- What happened: Kering reported a 1% decline in sales to €3.3 billion in Q3 2026, falling short of consensus expectations which projected a 0.4% increase. The group's largest brand, Gucci, experienced a 6% drop in revenue.
- Why it matters: Kering stated that sales were hit by a challenging luxury market, forcing the Parisian group to seek ways to reignite momentum across its brands.
.jpg)
Berenberg — Downgrades Hermès
- What happened: Berenberg turned cautious on Hermès, citing the fading of its luxury growth advantage.
- Why it matters: This analyst shift highlights growing investor concerns that the sector's most resilient players are no longer immune to broader economic headwinds.
Stock & Financial Pulse
| Company | Notable Movement | Context |
|---|---|---|
| Hermès | Lowest valuations in a decade | Q3 revenue growth slowed to 4.3%, missing forecasts |
| LVMH | Lowest valuations in a decade | Dashed hopes for an end to the industry slump |
| Kering | Sales decline (-1%) | Q3 sales of €3.3 billion missed consensus expectations |
Consumer & Regional Trends
- China: Wealthy Chinese consumers are slashing spending on top luxury brands, with Hermès and Cartier reporting double-digit sales declines in mainland China. Shoppers are increasingly pivoting to pre-owned items, domestic brands, and experiences like travel.
- Industry Outlook: Despite the current slump, Goldman Sachs Research forecasts 7% revenue growth for luxury-goods companies in 2027, an increase from 6% in 2026.
What to Watch
- Goldman Sachs' 2027 Growth Forecast: Monitor whether the projected 7% revenue growth for luxury companies materializes, signaling a potential recovery.
- China's Second-Hand Market: Track the expansion of China's pre-owned luxury market and its impact on Western brand sales.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
