MILAN/LONDON – Glitzy runway shows by the world’s biggest fashion brands in Milan and Paris mask a worrying picture for luxury executives behind the scenes: a slowdown that appears to be getting worse as war in the Middle East rages on.
Investors are increasingly concerned about luxury brands’ growth prospects as sector recovery remains elusive, with the inflationary effects of the Middle East conflict squeezing shoppers’ budgets at a time when their enthusiasm for high-end handbags was already fading.
Shares in Gucci owner Kering have erased all the gains made when CEO Luca de Meo took the helm a year ago. LVMH, the biggest luxury group, is down 37% since the start of 2026.
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