Global luxury sales are projected to decrease by 2% to 5% in 2025 due to external factors.

From Yahoo Finance: 2025-06-19 08:29:00

Global sales of personal luxury goods are slowing down but not collapsing, with a projected 2% to 5% decrease this year to 364 billion euros. External factors like U.S. tariffs and geopolitical tensions are contributing to the decline, but some markets like the Middle East, Latin America, and Southeast Asia are seeing growth.

Luxury brands are facing challenges like an ongoing creativity crisis and price increases, leading to sharp declines in sales in the U.S. and China. However, some brands like Prada are experiencing growth, while others like Gucci are struggling with revenue decreases.

Gucci owner Kering has hired a new executive to lead a turnaround as three of its brands launch new creative directors. The stock surged 12% on news of the appointment, highlighting the importance of strong leadership in navigating the current luxury market landscape.

Luxury brands are making strategic changes to minimize the impact of potential U.S. tariffs, such as shipping directly from production sites. Despite external challenges, luxury spending has historically rebounded quickly after periods of turmoil, driven by new markets and pent-up demand.



Read more at Yahoo Finance: Tariff threats, wars will slow global luxury sales in 2025: Study