Luxury at a Crossroads | LVMH’s Slump, Price Pushback, and Arnault’s Diplomatic Gamble

The luxury slowdown just got very real.

LVMH reported a 9% drop in fashion and leather goods sales — its steepest decline in years — highlighting deepening pressure across the luxury sector. Years of aggressive price hikes, post-pandemic overexpansion, and mass-market strategies have triggered consumer fatigue. The pricing power that once fueled growth is now in retreat, with average price increases slowing to 3% in 2025.

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