2024 was a tough year for the luxury industry. Global luxury sales declined by 2%—the sector’s first downturn since the 2008 financial crisis. The drop was driven primarily by a 20% plunge in sales in China, combined with weak performance in Europe and the U.S. Even the industry’s biggest names weren’t spared: LVMH owner Bernard Arnault, the world’s richest person in 2024, saw his net worth fall by more than $50 billion as LVMH’s share price dropped 30% over the past 12 months.
In the fourth quarter, however, European luxury brands outperformed expectations, offering a glimmer of hope that 2025 could mark a turnaround. But Donald Trump’s return to the White House introduced fresh trade uncertainty. His America-First agenda and steep tariffs disrupted global supply chains and drove prices upward. The U.S. remains the most important market for luxury goods—and the most unpredictable.
Still, the industry is evolving. Sustainability, personalization, and recommerce are reshaping the luxury landscape, while technologies like artificial intelligence are poised to redefine everything from design to distribution. At the Luxury Summit 2025, co-hosted by Forbes and FACES, executives, innovators, and investors will come together to discuss how they’re navigating economic volatility, reinventing their business models, and preparing for a new era in luxury. Don’t miss it.