From Yahoo Finance: 2025-04-08 09:26:00

Growing fears of a recession due to Trump’s tariffs are dampening hopes for the luxury industry. Sales of luxury goods may decline by up to 2% this year, the longest downturn in over two decades. Trump’s tariffs have led to retaliatory measures from China, sparking a trade war and impacting stock markets.

Luxury brands like LVMH, Kering, and Richemont are down in stock value due to the tariff turmoil. U.S. import taxes could prompt European luxury brands to raise U.S. prices by an average of 6% to maintain profits. Pricing strategies will be crucial as shoppers become more mindful amidst economic uncertainty.

Luxury sector growth is expected to slow to 0.5% in the first quarter of 2025. Companies like LVMH, Moncler, Hermes, and Kering are gearing up to report their sales figures, with expectations varying. The impact of recent market volatility on the luxury industry remains uncertain, making it challenging to draw conclusions from upcoming reports.

Read more: Global market rout darkens outlook for European luxury labels