Luxury Groups: LVMH, Kering, Hermès, Richemont, Prada — 2026-10-22
Hermès reported its slowest quarterly growth in six years, with its ready-to-wear division falling into negative territory for the first time, driven by weakening demand in China and the Middle East. This marks a significant shift as the luxury sector faces a broad-based slowdown, with LVMH’s fashion division also declining and Moncler reporting flat quarterly sales despite nine-month growth. Analysts warn that China’s luxury recovery may remain elusive, forcing brands to rethink their growth strategies.
Luxury Groups: LVMH, Kering, Hermès, Richemont, Prada — 2026-10-22
Top developments
Hermès posts slowest growth in six years; Ready-to-Wear turns negative
On October 22, 2026, Hermès reported third-quarter revenue of €4.10 billion, representing an organic growth of 4.3%, which fell below analyst consensus. This is the group's slowest growth rate in six years, according to Reuters. Notably, the "Clothing and Accessories" division declined for the first time in several years, passing into negative territory. The slowdown is attributed to a deteriorating demand environment in China and the impact of the conflict in the Middle East.
LVMH Fashion and Leather Goods sales slide 5% in Q3
LVMH reported that organic sales in its Fashion & Leather Goods division fell by 5% in the third quarter, missing growth forecasts. While the group maintained a slight overall organic growth of 1%, the flagship division was weighed down by a sharp slowdown in China. The US market remained buoyant, but the drop in Chinese demand for Louis Vuitton and Dior raised fresh doubts about the sector's ability to recover momentum.
Moncler reports flat Q3 sales; raises outlook for Brunello Cucinelli
Moncler reported consolidated revenues of €605.5 million for the third quarter, which were flat at constant exchange rates. This contrasts with a 6% growth in the first nine months of 2026, driven by the first half. The Q3 stagnation was attributed to a slowdown in Direct-to-Consumer (DTC) sales, particularly in the EMEA region. Conversely, Brunello Cucinelli raised its 2026 outlook after posting double-digit revenue growth in Q3, standing out as a resilient performer in the sector.
China’s luxury recovery deemed "elusive" by Bernstein
A new report from Bernstein indicates that a significant recovery in China’s luxury demand is unlikely in the near term, urging global brands to rethink their growth strategies. Chinese consumers are increasingly turning to second-hand bargains and homegrown brands, putting pressure on Western luxury houses. This structural shift suggests that China may not drive growth for European luxury groups over the next two to three years.
Local view
French Media Reaction: French financial outlets such as Les Echos and Boursorama highlighted Hermès' unexpected slowdown, noting that the "sellier" (saddler) is penalized by the Chinese market. The press emphasized that the "Clothing and Accessories" division turning red is a symbolic break from the brand's historical resilience.
Italian Media Reaction: Italian outlets like Corriere della Sera focused on Moncler's ability to "challenge the crisis" with nine-month revenues reaching €1.9 billion, despite the Q3 plateau. Pambianconews noted that the nine-month growth of +3% was entirely driven by the first half, masking the third quarter's stagnation.
Context & numbers
- Hermès Q3 2026: Revenue €4.10 billion; Organic growth +4.3% (lowest in 6 years).
- LVMH Q3 2026: Group organic growth +1%; Fashion & Leather Goods organic sales -5%.
- Moncler Q3 2026: Revenue €605.5 million; Organic growth 0% (Flat). Nine-month revenue €1.895 billion (+6% organic).
- Brunello Cucinelli: Raised 2026 outlook following Q3 double-digit revenue growth.
On the radar
- Zegna Earnings: The Italian menswear group is set to report earnings soon, with analysts watching how it navigates selective luxury spending.
- US Demand Resilience: Business of Fashion notes that quarterly sales from Kering, Prada, and others coming next week will test whether the US market can offset weak Chinese demand.
- Richemont Performance: While many peers struggle, Richemont's shares have shown resilience, with the group remaining roughly flat in share price performance compared to the 40% drops seen at LVMH, Hermès, and Kering since January.
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