LVMH Down 37% in 2026 as Fashion Week Glitter Masks a Slump

Reuters reports Milan and Paris runway shows are unfolding against a deepening luxury slowdown, with LVMH down 37% in 2026 and Kering's de Meo gains erased.

As Milan Fashion Week opened with Prada's Tuesday catwalk show, Reuters correspondents Elisa Anzolin and Helen Reid report that the glitzy runway calendar in Milan and Paris masks a worrying picture for luxury executives: a slowdown that appears to be getting worse as war in the Middle East rages on. Investors are increasingly concerned about luxury brands' growth prospects because sector recovery remains elusive, with the inflationary effects of the Middle East conflict squeezing shoppers' budgets just as enthusiasm for high-end handbags was already fading. The story, carried by both Reuters and The Globe and Mail, frames the fashion-week season not as a celebration but as a pressure test for brands that must justify spending as much as €10 million per runway show to stage.

The numbers behind the tents are stark. According to the Reuters report, shares in Gucci owner Kering have erased all the gains made when CEO Luca de Meo took the helm a year ago, while LVMH, the biggest luxury group, is down 37% since the start of 2026. That is a striking reversal for companies that were counting on fashion-week moments to rebuild momentum. Tod's chairman Diego della Valle told reporters in Milan on Friday, according to the report, that he believes 'this year and next year will likely be a holding period while the market stabilises and becomes more predictable again' — an unusually blunt admission from inside the industry that no near-term rebound is expected.

The Reuters reporting lays out the mechanics behind the slide. Studies by Bain and other consultancies have found middle-class shoppers are spending less on luxury products, intensifying competition for the wealthiest clients, whom brands now court with revamped stores and exclusive experiences even as sales decline — Prada, for instance, recently revamped its Milan flagship with private spaces designed for the biggest spenders. 'There is strong polarisation among brands: fewer than half are growing, while the rest are losing ground,' Federico Bazzani, partner at Deloitte Advisory, told Reuters. Adviser David Watts adds the brands are in a bind: they don't want to cut prices because that implies overcharging and erodes margin, yet cutting production would hit revenue.

Industry insiders have also begun discussing a deeper problem openly. Renzo Rosso, chairman of Diesel owner OTB, does not see an imminent recovery for the sector, telling a Milan conference, according to the report, that 'consumers are changing' and increasingly prioritising spending on wellness, health and longevity, as well as hotels and restaurants — a shift away from handbags and ready-to-wear. The season itself offers the next test cases: Gucci, Dolce & Gabbana and Giorgio Armani show in Milan this week; LVMH flagships Dior and Louis Vuitton headline Paris Fashion Week, which kicks off September 28; and Chanel — which the report notes has outpaced rivals thanks to creative director Matthieu Blazy's successful new designs — shows its spring/summer 2027 collection on October 5.