After years of rapid growth, the luxury sector is entering a correction phase. The fourth quarter showed only around 2% overall growth, a noticeable slowdown compared to previous seasons. The market is stabilising, but the return to aggressive expansion has yet to happen.
China is becoming a key factor again, though recovery remains gradual. The US market is still strong, but momentum is softening. In Q4, LVMH reported around +1% in the US, Kering about +2%, while Hermès continued to outperform with roughly +12% growth. The gap highlights a shift toward the most resilient brands.
Ultra-luxury continues to look more stable. High-net-worth clients are maintaining spending, supporting brands with clear identity and controlled supply. Meanwhile, mid-tier luxury is only beginning to recover. Burberry retail sales rose around +3%, while Ferragamo improved performance through its direct-to-consumer channel.
Jewellery remains the strongest category of the quarter. LVMH Watches & Jewelry grew about +8%, Hermès jewelry around +12.9%, and Richemont’s jewelry maisons reached roughly +14%. The category is increasingly acting as a growth engine, shifting attention from ready-to-wear toward long-term value pieces.
Another shift is pricing. Brands are slowing down aggressive price increases after several years of continuous hikes. Hermès raised prices by roughly 5–6%, while most competitors kept pricing relatively stable. Growth is now expected to come from product, design and creative direction rather than pricing strategy.
The industry is moving into a new phase where creative resets matter more than expansion. New creative directions, refined positioning and stronger product narratives are becoming the main drivers of the next luxury cycle.
