Looking for the luxury sector in Europe in 2025.
After the industry-wide slowdown last year, the continent’s high-end industry appears to be rebounding after the fourth quarter revenue season, CNBC reported. Brands across the sector recorded healthier sales to end the year, with a bit of a boost to the industry, indicating a market change.
Hermes reported a jump of nearly 18% in revenue last year’s fourth quarter compared to last year’s, with a strong show in the luxury market. Additionally, Birkin Makers saw an 11% increase in sales in the third quarter of 2024. Meanwhile, luxury conglomerate LVMH rose 1% year-on-year in 2024 to $88 billion, reaching three-month sales also surpassed sales in December. Hope.
Also, Richemont, the parent company of Cartier, Vacheron Constantin and other luxury labels, reported “highest ever” quarterly sales in the fourth quarter of 2024, CNBC reported. LVMH’s main rival, Kering, noted that sales will also end better than expected last year.
“The conclusion seems to be behind us, most likely in the third quarter of 2024. And the cyclical recovery driven by US and European consumers. “We can see it,” a senior analyst at Bernstein’s Global Luxury Products told CNBC.
The slowdown in 2024 comes from a battle with Chinese consumers who spent last year on popular luxury goods. These issues could flow in 2025 with Kering’s own Gucci, reporting a decline in the country’s sales, winning $1.92 billion in the fourth quarter of 2024. This is a 24% decrease from the previous year. And LVMH, a full-fledged luxury industry, reported full-year sales in 2024, citing on the continued weakness of Asia. This is the first time since the October pandemic.
According to CNBC, President Trump’s imminent tariffs may spell out more trouble for the gorgeous sector, along with broader economic uncertainty. “We’re already out of a significant price hike,” Simone Ragazzi, portfolio manager at Algebris Investments, told the network. Both brands such as Kering and Hermès are to offset additional obligations. It has already shown signs that it could raise prices on products, CNBC reports.
Whether these changes will come to fruition remains an open question, but the gorgeous market observer certainly looks closely.
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