[CHRONICLE] The end of 2023 was a mixed year for luxury players

2023 was a landing year for the luxury goods market, but with strong disparities between major players in the final quarter of 2023.

 

In France, luxury fashion is part of the country’s cultural imprint. With world-renowned names such as Louis Vuitton, Hermès and Dior, these influential companies are renowned for the exceptional quality of their products and their expertise. A favorite of the French and Italians alike, the luxury goods industry is one of Europe’s leading sectors.

 

While the companies that make up this market enjoyed buoyant years between 2020 and 2022, thanks to a cluster of positive factors, the market normalized in 2023. But a gap has opened up between certain major players.

 

When we compare sales trends in Q4 2023, the rankings have not really changed from Q3 2023. The companies as a whole have maintained a positive sales trend, with the exception of three players: Kering (-4%), Burberry (-4%) and Salvatore Ferragamo (-5%), the latter two even experiencing a quarter-on-quarter deterioration in sales.

 

Burberry, Gucci and Ferragamo on hold

 

For Burberry, the situation in the United States is particularly difficult, and the group is suffering from the slowdown in global demand. It has been trying to move upmarket since the arrival of designer Daniel Lee, who launched his first collection last September, but the effects are not yet visible.

 

As for Salvatore Ferragamo, the Italian group is trying to shake off its ageing brand image by reaching out to a younger audience. That said, sales are down in all geographic zones (except Europe), with double-digit declines in Asia and the United States. Kering once again reported a decline in sales, albeit smaller than expected, with an improvement in North America and Western Europe. To return to the green, the Group is counting on the new Gucci collection, which will be launched in stores in the coming weeks, and on the expansion of the beauty market, where investments have been substantial in previous quarters.

 

Cucinelli, Hermès and Hugo Boss in the firmament



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Featured photo : © Cucinelli

Picture of Antoine Fraysse-Soulier
Antoine Fraysse-Soulier
Antoine Fraysse-Soulier has been responsible for market analysis at eToro for the past 4 years. He holds a Master's degree in International Finance from ESLSCA Business School Paris, and has over 10 years' experience in market and technical analysis, including 3 as a portfolio manager. He is also a columnist on BFM Business.

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