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European luxury stocks plunge amid weak China demand
Major European luxury conglomerates, including LVMH, Hermès, and Kering, are facing significant market declines as third-quarter sales results fail to meet expectations. Shares for several top-tier brands have fallen approximately 40% this year, with valuations for LVMH and Hermès reaching decade-low levels.
Kering has been hit particularly hard, with its stock dropping as much as 16% following a 6% decline in sales for its flagship brand, Gucci. In response to the downturn, Kering plans to accelerate store closures, aiming to shut 125 locations by the end of the year.
The slump is primarily attributed to weakening consumer demand in China, driven by a domestic property crisis, financial market instability, and new wealth taxation efforts. Additionally, geopolitical tensions in the Middle East and social unrest in France have contributed to macroeconomic pressures and increased operational risks for luxury retailers.
Entities
Armelle Poulou · China · Gucci · Hermès · Hermès International SCA · Kering · LVMH · LVMH Moët Hennessy Louis Vuitton
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Kering aims to close 125 stores by the end of the year. www.devdiscourse.com · www.teleborsa.it · time.news
- [● 2 SOURCES] Hermès leather goods sales grew by 10.8%. time.news · omnichannelnews.pl
- [○ 1 SOURCE] The Chinese luxury second-hand market grew by 15 to 20% in 2025. lequotidien.lu
- [● 3 SOURCES] Berenberg downgraded Hermès from buy to hold. brasilemfolhas.com.br · www.spacemoney.com.br · www.world-today-news.com
- [● 3 SOURCES] LVMH forward price-to-earnings ratio fell to approximately 16. brasilemfolhas.com.br · www.ekoturk.com · www.world-today-news.com
- [● 4 SOURCES] Gucci sales declined by 6% in the third quarter of 2026. forbes.it · time.news · www.teleborsa.it · www.world-today-news.com
- [● 2 SOURCES] Hermès third-quarter sales grew by 4.3% at constant exchange rates. forexclub.pl · omnichannelnews.pl
- [● 4 SOURCES] LVMH and Hermès shares have fallen approximately 40% this year. brasilemfolhas.com.br · www.ekoturk.com · www.spacemoney.com.br · www.world-today-news.com