The global luxury industry entered a new phase in 2025. After several years of exceptional growth, the market is now facing a noticeable slowdown driven by weaker Chinese demand, inflationary pressure, and post-pandemic normalization of consumer spending.

This shift is clearly visible in the financial results of the industry’s three largest luxury groups: LVMH, Richemont, and Kering. By comparing their latest earnings, we can identify which companies are proving resilient and which brands are currently under pressure.

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Chapter 1: Comparing the Latest Results of the Three Luxury Groups

A look at the latest quarterly performance reveals a striking divergence between the three groups.

LVMH reported a 5% decline in revenue and a 9% drop in operating profit in its most recent quarter with reported base. The fact that profit fell faster than revenue suggests that cost pressures are beginning to affect the group’s profitability.

In contrast, Richemont maintained positive momentum, reporting revenue growth of approximately 5%. Among the three major luxury groups, it stands out as the most resilient performer.

Kering, on the other hand, reported a 13% decline in revenue and a 33% drop in operating profit, reflecting the impact of ongoing restructuring within the group.

Despite operating in the same industry, the three companies currently show a clear contrast: LVMH facing a slowdown, Richemont maintaining steady growth, and Kering undergoing a period of strategic rebuilding.

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Chapter 2: LVMH – The Slowdown of the Industry Leader

The main driver behind LVMH’s recent slowdown is its core Fashion & Leather Goods division. This segment includes flagship brands such as Louis Vuitton and Dior and has historically served as the group’s primary growth engine.

However, the division recorded a 5% decline in revenue in the latest quarter, signaling a clear deceleration in demand with rganic base.

Another notable development is the performance of the Japanese market. Sales in Japan fell by 4%, reflecting the fading of the strong inbound tourism demand that had previously supported luxury consumption.

The combination of slower fashion sales and a normalization of demand in Japan pushed LVMH into negative quarterly growth. Going forward, the group may need to focus not only on price increases but also on product innovation and cost management.

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Chapter 3: Richemont – Resilience Driven by High Jewelry

Among the three groups, Richemont delivered the most stable performance.

For the first nine months of its fiscal year ending March 2026, the group reported revenue growth of around 10%. The key driver behind this strong performance is its jewelry division.

Jewelry maisons such as Cartier and Van Cleef & Arpels recorded growth of approximately 14%, highlighting the continued strength of high jewelry in the luxury market.

High jewelry tends to be more resilient during economic slowdowns compared to fashion, partly because of its perceived asset value and its affluent customer base.

The watch division, by contrast, grew only 1%, suggesting that the segment is stabilizing but has not yet regained strong momentum.

Overall, Richemont’s high exposure to jewelry and its conservative financial structure appear to be key factors supporting its resilience in the current market environment.

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Chapter 4: Kering – Rebuilding Beyond Gucci

Kering is currently facing the most challenging situation among the three groups.

For the full year 2025, sales at Gucci—Kering’s flagship brand—declined by 19%. Although Bottega Veneta recorded modest growth of around 3%, the group remains heavily dependent on Gucci.

This concentration risk means that Gucci’s performance has a direct and significant impact on the group’s overall results.

Regionally, both Asia-Pacific and Japan saw sales decline by roughly 16%, highlighting the slower recovery of Asian luxury demand.

Kering is therefore in a restructuring phase, focusing on rebuilding Gucci and reshaping its brand portfolio.

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Chapter 5: Strategic Shift – Kering’s Partnership with L’Oréal

Another notable strategic move by Kering involves its beauty business.

The group initially launched Kering Beauté with the intention of building an in-house cosmetics platform. However, the beauty industry requires significant investment in research, development, and manufacturing, making it difficult to achieve scale independently.

As a result, Kering entered into a long-term partnership with L’Oréal, granting the beauty giant responsibility for production and R&D while Kering focuses on brand management and luxury positioning.

This decision reflects a strategic reallocation of resources toward areas where the group can generate the greatest value: brand creation and luxury brand management.

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Conclusion

The latest earnings highlight how differently luxury groups are navigating the current market slowdown.

• LVMH is facing cyclical pressure in fashion and a normalization of Japanese demand.
• Richemont continues to benefit from the resilience of the high-jewelry segment.
• Kering is undergoing a strategic rebuilding centered on Gucci and its brand portfolio.

These differences demonstrate that even within the same industry, the composition of a brand portfolio and revenue structure can significantly influence a company’s resilience during market downturns.

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A Certified Public Accountant’s Perspective

The enterprise value of luxury companies depends heavily on intangible assets, particularly brand equity. As a result, the structure of a company’s brand portfolio plays a crucial role in determining financial stability.

Richemont’s strong position in high jewelry provides a relatively stable earnings base, while Kering’s heavy reliance on a single flagship brand has increased its earnings volatility.

For luxury groups, long-term success depends not only on expanding sales but also on carefully balancing brand value, portfolio diversification, and capital allocation. The latest results from these three companies illustrate how critical that balance has become in today’s luxury market.