The Powers That Be: Daily Luxury’s Q3 and Vogue World Takes Hollywood
Nov 1, 2025
Luca Solca, a senior luxury goods analyst at Bernstein, dives into the latest trends in luxury brands such as LVMH, Kering, and Prada. He discusses the modest recovery in demand driven by the US and China, highlighting risks in consumer confidence and real estate. Luca evaluates Jonathan Anderson’s commercial creativity at Dior and praises Kering's strategic shifts under Luca De Meo. He shares insights on potential M&A moves, the roles of luxury icons like Hermès, and expresses cautious optimism for market growth through 2026.
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Q3 Showed Stabilizing Demand
- Luxury Q3 showed incremental improvement driven by U.S., Europe, and Middle East strength and a slight pickup in China.
- Luca expects a U-shaped Chinese recovery, which would materially boost 2026 if sustained.
Two Structural Drags Explained
- Two main drags: post-COVID overconsumption in the West and depressed Chinese consumer confidence tied to real estate.
- Recovery in China is likely U-shaped, not V-shaped, so improvement will be gradual.
Use Stories And Limited Editions
- LVMH should keep telling fresh brand stories and use events and limited editions to re-engage existing customers.
- Management moves and targeted self-help actions can reframe investor sentiment even without immediate market tailwinds.