[Luxury Barometer] Global Top 5 in 2024: a delicate balance

As Richemont and Chanel publish 2024 accounts (May 2025), mind Retail analyses the health of the world's top five luxury brands—LVMH, Chanel, Hermès, Kering, and Richemont—using 5 indicators. While the global market is experiencing a second year of decline, Hermès and Richemont are standing out with gains in market capitalisation, sales growth and, for the former, a record margin of 30.3%. Conversely, LVMH, Chanel and Kering are seeing sales and market capitalisation melt away.

Through Sophie Baqué. Published on 23 June 2025 à 17h31 - Update on 23 July 2025 à 18h16

Key points to remember :

-Global luxury product sales dropped by 1% in 2024 after years of double-digit growth, with negative forecasts expected (between -2% and -5%) for 2025. (Source: Bain & Co.)

-Revenue down for LVMH (by 2%), Chanel (by 4.3%) and Kering (by 12%), while Hermès performed well (up by 15%) and Richemont (up by 4%) to a lesser extent. Companies which raised prices the most in recent years are posting disappointing results.

-Widespread pressure on operating margins. Only Richemont improved net margin ratio. The top 5 posted an average margin of 17%, with Hermès leading at 30.3%.

-Significant fluctuations in market capitalisation: in 2024, LVMH fell by 19% and Kering by 40%, contrasting with a rise of 19% for Hermès and 17% for Richemont.

While the global luxury goods market had been growing steadily since 2020 – with sales up by 14% at constant rates in 2021, 10% in 2022 and 8% in 2023 – it fell by 1% last year to a total turnover of €394 billion. This decline was ultimately less severe than expected, with Bain predicting a 2% decline at current rates in November 2024. The last falls were recorded during the financial crisis of 2009 and the Covid-19 pandemic in 2020.

LVMH (2024 revenue: €84.68 billion) remains by far the world leader in luxury goods. Sales are four times higher than those of a closest competitor, Richemont. After 3 years of impressive growth (up by 44% in 2021, by 23% in 2022, and by 9% in 2023), the group (led by Bernard Arnault) saw revenue decline by 2% at constant rates in 2024.…

Sophie Baqué