LVMH has lost more than half of its market capitalization since its 2023 peak. The luxury group is now valued at approximately €213 billion, nearing its January 2020 valuation. This decline erases nearly all gains made during the pandemic-era boom.
Geopolitical turmoil and economic pressures have dampened global consumer confidence. Inflation began impacting aspirational luxury buyers approximately three years ago. Ongoing US trade disputes and the war in the Middle East have further reduced high-end spending.
LVMH reported significantly higher profits last year compared to 2019 levels. However, the core Fashion and Leather Goods division now shows minimal organic growth. The company's stock has tumbled as the broader luxury market faces a downturn.