Inflation: the luxury industry sees its sales slightly decline

Fashion Week starts this Monday, September 25 in Paris. After Milan, London and New York, it closes the ball of fashion weeks where the spring and summer 2024 collections are unveiled.

The creations of the Giorgio Armani Spring/Summer 2024 collection during Fashion Week presented in Milan, Italy, on September 24, 2023. © Claudia Greco / Reuters

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This is an unmissable event for the luxury industry, which after exceptional post-Covid years, has seen its sales slow down a little in recent months, but is still doing well. In the first half of this year, sales at Kering, for example, owner of Gucci and Yves Saint-Laurent, grew by only 2%. Purchases of luxury sneakers, or small handbags are also struggling. Because of inflation, people who sometimes managed to afford these accessories can no longer necessarily do so. Finally, the recovery in demand from Chinese customers is also considered disappointing by the sector.

But these signs of slowdown should be put into perspective. First, the results vary a lot depending on the brand. The LVMH group, owner of Louis Vuitton and Dior in particular, saw its sales increase by more than 15% in the first half of this year, with more than eight billion euros in profits.

One of the other aspects to take into account is that the luxury industry has just experienced two years of exceptional results, with huge sales, just after the lockdowns. The sector is therefore only returning to more usual levels of consumption, close to those before the pandemic.

See alsoFashion weeks, a nightmare for the environment

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