Luxury Brands Face Low Valuations and a Return to Rarity

WHO:

Bloomberg Markets - Hermès International SCA and LVMH Moët Hennessy Louis Vuitton SE are among Europe’s largest luxury firms.

Fast Company - LVMH owns brands including Givenchy and Guerlain; Richemont owns Cartier and Chloé.

Fast Company - The article identifies Estée Lauder, Hermès, Richemont, and LVMH as luxury companies whose momentum or share performance has weakened.

Fast Company - Younger brands cited as pursuing a different approach include Acne Studios and ID Genève Watches in Europe, and Songtsam and Wuyong in China.

WHAT:

Bloomberg Markets - Shares in Europe’s biggest luxury firms are trading at their lowest valuations in more than a decade; results from Hermès and LVMH undermined hopes of a near-term end to the industry slump.

Fast Company - LVMH briefly became Europe’s most valuable company in April 2023.

Fast Company - Estée Lauder’s stock price fell 35% since the start of 2024; Hermès shares fell 34% so far that year; Richemont shares were down 15% after fluctuating.

Fast Company - Bernstein estimated in 2023 that Hermès’s Birkin and Kelly bags together accounted for more than 13% of its annual revenue. The Birkin was created in 1984; the Kelly dates to 1977 as a named icon and was a rebrand of a bag invented in the 1930s.

Fast Company - Bain estimated that the luxury sector lost 70 million consumers between 2022 and 2025.

Fast Company - The article says historic fashion houses showing haute couture in Paris had fallen to three, compared with eight in 1990 that were still operating.

Fast Company - The article says luxury houses expanded from producing two collections a year to six, and argues that growth and mass marketing have reduced rarity and differentiation.

Fast Company - The author reports that only four of the 18 largest companies had set absolute Scope 3 emissions-reduction targets and were on track to meet them; only 25% of the top 100 companies had a chief sustainability officer on the top management team.

Fast Company - The author says brands invest three times as much in marketing and selling as in sustainability innovation; Scope 3 emissions account for 95% of companies’ emissions.

WHERE:

Fast Company - The article discusses luxury markets and fashion houses in Europe, China, and Paris; it also cites Chinese automakers NIO and Yangwang challenging Lamborghini and Mercedes-Benz in China.

WHY:

Fast Company - The author attributes luxury’s difficulties to structural issues, including reliance on heritage products, price increases outpacing functional value, industrialized supply chains, and growth-driven loss of rarity.

Fast Company - The article links the sector’s environmental and social costs to emissions, resource use, biodiversity loss, supply-chain controversies, climate disruption, and social polarization.

HOW:

Fast Company - The author proposes more made-on-demand production, shorter and more localized supply chains, AI-assisted forecasting, repair and refurbishment services, investment in innovation and new materials, and platforms for sharing, renting, and recirculating luxury goods.

(UPDATED October 23, 2026 06:04 UTC)

Europe’s luxury giants are facing a deeper slump, with shares in major firms trading at their lowest valuations in more than a decade. Results from Hermès and LVMH have weakened hopes of a quick recovery, while Estée Lauder, Richemont, and Hermès have also seen their shares or momentum falter. Analysts point to a wider loss of customers: Bain estimates the sector lost 70 million consumers between 2022 and 2025. One explanation is that price increases, mass marketing, and a shift from two collections a year to six have eroded the rarity that once set luxury apart. The industry also faces environmental and supply-chain costs, while sustainability investment remains limited. The proposed response includes made-on-demand production, shorter supply chains, better forecasting, repair services, new materials, and platforms for renting and recirculating goods. Younger labels in Europe and China are pursuing different approaches, as Chinese automakers challenge established luxury car brands.