Global luxury goods growth forecast for 2025 has been revised to a negative value.

Recently, the French luxury brand Chanel released its 2024 financial report. Since the closure of stores during the 2020 pandemic, Chanel has experienced a decline in both revenue and profits for the first time. Looking at stock performance, several international luxury brand giants have seen consecutive declines in their stock prices this year. As of May 25th, Kering Group and LVMH Group's stock prices have fallen by more than 20% this year, while Prada's Hong Kong stock price has fallen by over 13%. Research firm Bernstein, in its latest report "Global Luxury Industry: Fasten Your Seatbelts", has lowered its 2025 global luxury consumption growth expectations from +5% to -2%. Bernstein predicts that the pre-tax profits of major luxury brands this year may shrink by 4% to 6% compared to 2024. In order to cope with rising costs, luxury brands will adjust prices again on top of phased price increases. Bernstein's earlier reports have also warned about the indirect impacts of tariffs on luxury pricing, including increased market uncertainty, stock market crashes, depreciation of the US dollar, and the risk of global economic recession. While the market is expecting a U-shaped policy reversal, analysts admit that the systemic risks brought by current tariff policies may lead the luxury industry into a period of deep adjustment.