Luxury fashion industry faces severe downturn in 2024

Since the latter half of 2023, the luxury fashion sector has been experiencing a downturn, with no signs of recovery on the horizon. The post-Covid excitement has diminished, impacted by global conflicts, pressures on the Western middle class, and elevated interest rates. Retail sales in China have hit an 18-month low, reflecting a significant drop in consumer interest. A global sell-off was triggered by a Wall Street crash on August 2. In the first half of 2024, LVMH and Richemont reported a modest 1% increase in fashion sales, while Kering faced declines: Gucci fell by 19%, and Saint Laurent by 9%. Burberry's sales dropped 20%, while Hermès saw a growth of 13.3%. Italian brands, like Ferragamo, faced a staggering 73.2% profit decline, affecting Italy's textile regions, which are reporting a shortage of orders. Noteworthy creative shifts include new positions for Sarah Burton and John Galliano.