European luxury giants lose $350 billion in market value in 2024

European luxury goods companies have suffered a sharp decline in total market value of around $350 billion this year, as hopes for a sector recovery fade and weakness continues in China, a key driver of growth.

This week, French fashion giant LVMH reported third-quarter sales that fell well short of expectations, particularly in its core fashion and leather goods division, highlighting the challenging Chinese market. The news led to a drop in luxury stocks by the close of trading on Tuesday.

The ten largest European luxury firms listed on the Stoxx Europe Luxury 10 index have lost nearly $350 billion in market capitalization since the start of the year.

The top ten companies include LVMH, Hermès, Kering (owner of Gucci), Richemont, Ferrari, EssilorLuxottica, Moncler, Burberry, Brunello Cucinelli, and Christian Dior.

The four largest European luxury groups—LVMH, Hermès, Kering (owner of Gucci), and Richemont—have together seen their combined market value nearly halve since 2024. Richemont, which focuses more on watches and jewelry, was the only exception to this trend.

According to Forbes, this decline, led by LVMH, has wiped billions of dollars from the wealth of French CEO and owner Bernard Arnault.

Shares in the French luxury leader—which owns brands such as Louis Vuitton, Dior, Tiffany jewelry, Bulgari, Moët, and Hennessy—have dropped by more than 40 percent this year, lagging behind its luxury sector rivals.

China has long attracted investors, but the status of this vast Asian market—once a major engine of global luxury spending—has notably weakened in recent years amid tougher economic conditions.