It’s a challenging time to be a luxury fashion firm. Analysts are predicting the sector will be slow until at least 2027, while tariff threats have prompted some companies to shift their supply chains or pull their annual revenue forecasts.
As luxury’s next earnings period looms, the gap between the category’s winners and losers is widening. Some companies, including Ralph Lauren, Prada Group and Hermès, have reported gains, with Prada’s Miu Miu brand posting a first quarter sales jump of nearly 60% year over year. Tapestry, which plays to the affordable luxury market, reported a record third quarter in May.
However, Zegna’s Thom Browne label posted a 48% year-over-year wholesale decline, and LVMH reported a 2% revenue decline in Q1 and suggested the company might consider price increases to counteract tariffs.
Here’s a look at a few companies that saw notable declines last quarter.
