After observing a drastic drop in margins for the world’s top 20 luxury groups since 2022, the consulting firm lists a series of cost-cutting measures that are relatively easy to implement.
Kering, and to a lesser extent LVMH and Hermès, would be well advised to take a close look at the study published in early January by Inverto, a subsidiary of the Boston Consulting Group.
Even before the publication of these luxury giants’ 2025 annual results, the international consulting firm examined the dangerous erosion of margins among the world’s leading luxury brands, while suggesting solutions to better preserve them.
A timely study
However, the publication of the latest annual results of the industry giants has demonstrated, more than ever, the relevance of such a study. This is despite the fact that the exceptional contribution on the profits of large companies in France, introduced in 2025 and extended in 2026, is compounded by the continuing rise in rents in the most prestigious shopping streets.
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