If stock prices for luxury brands are any indication, 2026 is not off to a good start. According to Bloomberg, LVMH — parent company of Louis Vuitton and Dior — saw its share price fall 28% in the first quarter. It wasn’t alone: Richemont, which owns Cartier and Van Cleef & Arpels, dropped 20%, and Hermès fell 25%. And these declines came before any of the companies have even reported their Q1 revenues — LVMH results are due April 13, Hermès on April 15.
Image courtesy: Red
While our focus is on customers, tastes, and the broader personal luxury goods industry rather than investor returns, the numbers signal that something has shifted — despite earlier hopeful forecasts. When Morgan Stanley lowered its price target for LVMH last month, it pointed to an expected sales decline in Q1, particularly in Fashion & Leather Goods, its largest division. JP Morgan similarly trimmed its LVMH forecasts, expecting that division’s sales to fall compared to last year, citing the impact of the Middle East conflict and volatility in tourism. Even Hermès, long a darling of the sector, isn’t immune: JP Morgan cut its sales forecast for the brand as well, though it still expects strong growth in leather goods — just slightly below what analysts had originally predicted. The Middle East and “volatile trends” in China were cited there, too.
Image courtesy: Red
We will know more next week when official numbers roll in, and brands share their views on what happened and what’s ahead.
In the meantime, we are curious: Has any of this given you pause? Are you holding onto your cash and waiting to see how things unfold? Or is it shopping as usual?
Love, PurseBop
XO
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