Europe’s Luxury Brands Lose $350 Billion as Buyers Pull Back

Europe’s top 10 luxury companies have lost around $350 billion in market value in 2026, India Global Review reported, with LVMH, Kering, Hermès and Richemont among the major groups suffering sharp declines. The figure represents a fall in stock-market valuation, not a corresponding loss of sales.

The report identifies a pullback by middle-class luxury shoppers as a major pressure on demand. These customers account for a substantial share of global luxury purchases, but higher product prices and rising living costs are making them more selective. A weakening perception of value for money is also testing how much buyers will pay for a prestigious label.

Spending is also shifting towards wellness, health, hotels and restaurants, according to the report. That leaves luxury companies confronting a central commercial question: whether brand recognition alone can continue to justify their prices.