European luxury brands have lost 350 billion euros in capitalization since the beginning of the year LVMH, Hermès, Kring, Richemont, Prada and Moncler have lost about 251 billion euros in market value since the beginning of 2026, the Financial Times calculated. The quotes are suffering from the weakening of demand in China and the instability in the stock markets against the background of concerns about AI. LVMH and Hermès fell the most in price: their capitalization fell by 131.6 billion euros and 93.3 billion euros, respectively. October earnings from LVMH, Hermès and Kering were worse than expected and fueled fears that the industry is not emerging from a prolonged recession. Chinese buyers have driven growth in the luxury market for more than a decade, but demand is now being held back by the real estate crisis and weak stock markets. LVMH's sales to Chinese customers in the field of clothing and leather goods fell by about 15%. Kering, which owns Gucci and Saint Laurent, saw sales to this audience fall 15-20% in the third quarter. Demand also weakened in the United States: spending on luxury goods with bank cards fell by at least 4% in July-September, according to a quote. At the same time, individual segments maintained growth: sales of Birkin bags and other expensive Hermes models increased by 10.8%, and jewelry brands Tiffany and Boucheron showed double-digit growth. The recovery in Chinese demand that manufacturers were counting on has so far stalled. The pressure on the market is increased by weak company results and uncertainty in consumer behavior. According to Reuters, the value of ten European luxury companies has decreased by approximately 350 billion dollars since the beginning of the year.