Agenda-setting intelligence, analysis and advice for the global fashion community.

Are Luxury Megabrands Broken?

Simultaneous crises at LVMH, Kering and Chanel suggest all is not well with the luxury megabrand model, but many of the headwinds they face may reverse in the coming years, writes Luca Solca.

Dior on Bond Street on 1st June 2025 in London. — Simultaneous crises have hit LVMH, Kering and Chanel. (Getty Images)

Luca Solca

17 July 2025

BoF PROFESSIONAL

Over the past fifteen years, fashion’s luxury megabrands have had a terrific run, buoyed in part by upgrades to their product mix and high price inflation, amid historic levels of new wealth creation in China and a strong economy and soaring stock market in the US.

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Bernard Arnault Grapples With the Biggest Slump in LVMH’s History

The luxury goods maker is reeling from a sharp downturn in the €364 billion industry — and questions about succession are growing louder.

Chanel Pulls Back on Price Hikes as Sales Fall 4%

The French couture and beauty giant is easing off punchy price increases and investing in new markets including India, Mexico and Canada, CEO Leena Nair and CFO Philippe Blondiaux told BoF, as sales slid for the first time since 2020.

Kering’s Woes Deepen as Gucci Sales Tumble 25%

Group revenues fell 14 percent in the first quarter as Saint Laurent and Balenciaga also suffered from the downturn in luxury demand.

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