Overview

• Bain & Co. projects a 2–5% slide in personal luxury goods sales in 2025 from €364 billion in 2024 due to geopolitical headwinds.
• U.S. tariff threats and low consumer confidence in China are driving sales declines in those markets.
• Growth markets in the Middle East, Latin America and Southeast Asia are offsetting weakness in traditional powerhouses.
• Divergent performances have emerged with Prada Group posting a 13% first-quarter revenue rise and Gucci’s sales falling 24%.
• To counter challenges, brands are overhauling leadership—including Kering’s appointment of Luca De Meo—and adopting direct shipping and inventory cuts to limit tariff exposure.