The luxury fashion slowdown of 2026 is not hitting every product in the same way. The third-quarter results from the two biggest luxury groups, LVMH and Kering, published this month, tell the same story: handbags and fashion are slipping, while jewellery keeps growing. Both groups point to the same main reason: weaker demand in China.
In this article we explain what happened in plain terms, and what it means for you as a designer, whether you create evening wear, make garments for private clients or are planning your own label.
What LVMH’s Numbers Show
On 12 October 2026, LVMH, the owner of Louis Vuitton and Dior, reported third-quarter revenue of about €18.5 billion, with modest organic growth of 1%. Behind that stability, however, the group is clearly split.
Fashion & Leather Goods, the heart of the group and its largest division, fell 5% in the quarter. LVMH blamed slowing demand in China, even though sales kept growing in the United States, Europe and Japan. Meanwhile, Watches & Jewellery, home to Tiffany and Bulgari, grew 6%, and Selective Retailing, which includes Sephora, grew 8%.
What does this mean for you? Even the strongest names in the world do not rely on a single product. When handbags weakened, jewellery and beauty carried part of the load. Offering a mix of design, made-to-measure work and accessories protects you in the same way when demand for one category drops.
Kering: Gucci Slips While Jewellery Shines
Ten days later, on 22 October, Kering’s results painted almost the same picture. Group revenue held steady at around €3.3 billion for the quarter. But its largest brand, Gucci, fell 6% on a comparable basis as fewer shoppers visited its stores in mainland China and Japan.
Kering Jewelry, which includes Boucheron and Pomellato, grew 11%. Gucci is now working through a product transformation plan focused on pricing structure, quality and getting new designs into stores faster, while the group plans at least 125 net store closures during 2026.
What does this mean for you? A famous name is not enough on its own. When desire fades, even the great houses go back to basics: quality, fair pricing and convincing design. These are exactly the foundations every independent designer builds her reputation on, one piece at a time.
Why Is Jewellery Growing While Handbags Fall?
Both groups linked the decline mainly to China and lower store traffic. From a designer’s point of view, though, the luxury fashion slowdown holds a deeper lesson:
- Lasting value: a piece of jewellery is usually bought to be kept for years, sometimes passed down through generations, so customers see it as an investment rather than a seasonal trend.
- A handbag lives in its moment: a bag’s success depends heavily on a design that catches the eye right now, so it reacts faster when the mood changes or footfall drops.
- Price versus value: when prices climb too high, customers become more selective and ask themselves whether a piece is really worth it.
How to Use the Luxury Fashion Slowdown in Your Own Work
- Design pieces that last: a beautifully made dress with a considered cut and good fabric follows the same logic as jewellery: its value outlives the season.
- Show the craft in the details: hand embroidery, clean internal finishing and a precise fit are what justify the price in your client’s eyes.
- Diversify your income: combine design, made-to-measure, teaching and accessories so your business never depends on one category.
- Don’t rely on one market: just as the big houses learned how risky it is to depend on China, build a client base in more than one place: your city, online and across different platforms.
To see how quickly the picture can change in this sector, read our articles on luxury fashion’s 2026 recovery and Burberry’s return to growth.
Conclusion
The luxury fashion slowdown of 2026 sends a simple message: customers have not stopped buying, but they are choosing more carefully what deserves their money. Jewellery succeeded because it carries lasting value; handbags stumbled where demand weakened and the mood shifted. At Anna Stella Academy we believe that a designer who masters cutting, fabric and finishing creates pieces with that same lasting value, whatever the markets do.
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