5 Signs That Show Fashion Is Making a Comeback

After more than two years of slowdown, the fashion and luxury market is beginning to show signs of recovery. And while it is still definitely too early to speak of a true cycle reversal, with China remaining weak and the geopolitical landscape unstable, the latest results from the major groups reveal several signs that suggest the market is moving in the right direction.

1. Major groups are growing again

In the second quarter, Prada Group recorded 7% sales growth, Hermès 7% and Kering 2%. LVMH’s Fashion & Leather Goods division also returned to positive territory, with a 1% increase. These percentages are still far from the growth rates seen during the boom years, but they are significant, particularly for LVMH and Kering, which are emerging from a prolonged period of contraction.

2. New designers are delivering results

Success on social media is proving to translate into success in boutiques. Around a year after Jonathan Anderson’s arrival, Dior returned to organic growth, while Loewe and Céline are growing faster than LVMH’s average. Gucci remains in decline, but recorded its best quarter since 2023, just as Demna’s first collections began reaching stores. Chanel, meanwhile, under Matthieu Blazy, remains the clearest example of a successful relaunch, with waiting lists and queues outside its stores.

3. The United States is driving the market

If luxury growth was associated primarily with China for years, today the engine of the recovery lies on the other side of the Pacific. In the latest quarter, Kering grew 10% in the Americas, LVMH 6%, and Prada Group 15% on an organic basis. The United States, which had already supported the sector during its most difficult phase, is therefore becoming the most dynamic market in the recovery.

4. Quiet luxury brands have not stopped growing

Contrary to expectations, the end of quiet luxury has not meant a slowdown for brands built around understated luxury. Zegna closed the second quarter with sales up 17%, while LVMH described Loro Piana’s performance as “excellent”, with the brand potentially reaching €3 billion in revenue by 2028.

5. Luxury prices are beginning to come down

Luxury houses have recognised that uncontrolled price increases have contributed to driving consumers away in recent years, and are now trying to reverse the trend. In the second quarter, handbag prices remained largely stable at Dior and Chanel, while Gucci reduced prices on some permanent styles. Dior and Gucci have also introduced new handbags at lower price points, bringing down the average price of their offering.