Investors reading the tea leaves in LVMH Moët Hennessy Louis Vuitton’s fourth-quarter report took a step back from the luxury giant on Wednesday — and the world of high-end fashion in general. Shares of LVMH fell 7.9 percent to 542.80 euros, cutting the company’s market capitalization to 269 billion euros. More from WWD Bernard Arnault, chairman and chief executive officer of LVMH, told analysts and reporters on Tuesday that, “The group delivered solid results despite a very challenging, turbulent and v ...

Core Insights - The luxury goods and services sector is showing signs of recovery after a slowdown due to consumer spending cuts related to inflation and other economic concerns [1][2] - Positive third-quarter earnings from major luxury brands, particularly LVMH, indicate a resilient consumer demand in the U.S. despite economic uncertainties [2][3] Consumer Behavior - A JP Morgan survey revealed that 60% of U.S. and European respondents are using resale platforms for second-hand luxury goods, indicating a shift in consumer purchasing habits [1] - Analysts note that aspirational luxury consumers still face challenges, but new creative leadership and marketing strategies are expected to help reignite growth [7] Market Outlook - UBS projects that Chinese luxury purchases will grow by approximately 6% in 2026, recovering from a 5% decline this year, suggesting a positive trend for the luxury market [4] - Deutsche Bank anticipates 2026 will be a year of converging growth trends across luxury sectors, with the industry well-positioned for accelerated growth despite challenges in other consumer sectors [5] Company Performance - LVMH and Burberry remain favored by Deutsche Bank, with Richemont added to the list following stronger-than-expected sales growth [6]