Luxury brands have unexpectedly joined the ranks of mid tier and mass market brands who face a quarter following a financial quarter that struggled to drive sales and boost profits.  

That wasn’t supposed to happen.  Just a year or so ago everyone thought that luxury goods would go on raking in sales and profits – even as the rest of the market faced headwinds.

During the past year, Burberry hit a 14-year low after it was delisted from the FTSE exchange.  Kering said that its full year operating profit would fall 46%.  This is the lowest level for the company in eight years, worse even than in 2020. Capri Holdings’s recent quarter saw the company report a loss as revenue fell 13.2%.  LVMH has seen several quarters of weak sales. 

How did luxury brands end up here?