What luxury’s third quarter tells emerging brands about marketing
The customers who came in still bought, and they spent more. There were just fewer of them. That, in one line, was luxury’s third quarter. Across the July-to-September results from LVMH, Kering, Hermès and Prada, the houses that held up were the ones that gave people a reason to walk in.
On a like-for-like basis, Hermès grew 4.3%, Prada Group 1.2% and LVMH 1%, while Kering slipped 1%. None of these are boom numbers. The lessons are in the gap between them, and most apply as much to a founder with one showroom as to a group with thousands of stores.
I. The door is the problem
Kering said it most plainly. Third-quarter revenue was €3,345 million, down 1% on a comparable basis, and the release names the cause:
“Traffic remained the main constraint, while conversion, average price and average ticket remained supportive across most Houses.”
Kering, Q3 2026 revenue release, 22 October 2026
At Gucci, revenue fell 6% on a comparable basis to €1,291 million, and sales in its own stores fell 9%. Kering pointed to lower traffic, especially in Mainland China and Japan, and said conversion, average price and average ticket “improved further.” The group is also shrinking its store network. It closed a net 105 stores in the first nine months and now plans at least 125 net closures for 2026.
LVMH said something similar from another angle. Its Fashion & Leather Goods division, home of Louis Vuitton and Dior, fell 5% organically. The group described “a less buoyant environment in China, while the United States, Europe and Japan saw good growth.”
II. Newness still moves product
Read the commentary closely and one theme keeps coming back: creative work. LVMH gives credit for Dior’s results to “the major success of Jonathan Anderson’s designs,” and calls Michael Rider’s collections for Celine “a major success.” Kering explained Gucci’s softer quarter partly by “a less pronounced newness effect than in the second quarter.”
A reason to look, not a store to look in, is what brings people back.
The big groups are telling investors what independent designers already know. A new silhouette, a new collection or a new point of view is what makes people come back.
III. The quieter categories did the growing
The fastest growth didn’t come from runway ready-to-wear. Kering Jewelry grew 11% on a comparable basis. LVMH’s Watches & Jewelry grew 6% organically, and its Selective Retailing arm, led by Sephora, grew 8%. LVMH said Sephora took further market share, helped by “the ongoing ramp-up of exclusive launches, including Rhode and several C-Beauty brands.”
For emerging beauty founders, that’s worth noticing. The world’s largest luxury group is pointing to newer brands sold through its retailer as part of its growth.
IV. America and Japan carried the quarter
Location mattered. In Hermès’s third quarter, at constant exchange rates, the Americas grew 8.8%, Japan 9.6% and Europe excluding France 9.5%. Asia-Pacific excluding Japan was flat, and the Middle East fell 4.5%. Prada called the Americas its best-performing region, and LVMH pointed to the United States, Europe and Japan.
V. Watch out for your own hit year
Miu Miu was among luxury’s fastest-growing brands last year. This quarter, its retail sales fell 2.7% at constant exchange rates, measured against +29% a year earlier. Prada says that “excluding the impact of Middle East, Q3 was broadly stable,” with “retail metrics very robust.” The brand kept its marketing moving with a format that travels: the itinerant pop-ups of its new Miu Miu Vinyl Club.
Every brand that has had a breakout season meets this moment. The next year is measured against your best year, not against the market.
What this means for your brand
You aren’t running Gucci. But the same forces reach small brands too, often sooner.
- Treat attention as the expensive part. Budget for discovery first (editorial, search-led content, Pinterest, partnerships with a new audience) and judge every channel on the new visitors it brings.
- Make the most of every visitor. A clear product page, styling ideas that build a full look, honest sizing, and a follow-up email that actually helps.
- Plan your newness. A steady rhythm of reasons to return: a capsule, a colorway, a restock story, a collaboration. Base it on what you can actually produce.
- Look at the categories next to yours. An accessory, small leather good or beauty product that fits your brand can be an easier first purchase.
- Know where your customers are. If buyers come from the US or Japan, give them their own landing pages, clear shipping information and content.
- Measure against your own last year. Explain the comparison honestly to stockists and investors, and track repeat customers alongside growth.
Building a brand that needs to be found? L’Agence Éclat, the agency behind Le Magazine Éclat, works with emerging fashion and beauty founders on editorial strategy and brand marketing. Book an introductory conversation →
Sources
Figures as published on the dates shown. Like-for-like definitions differ by company.
- LVMH, “Continued growth in the third quarter of 2026,” 12 Oct 2026. lvmh.com
- Kering, “Revenue for the Third Quarter of 2026,” 22 Oct 2026. globenewswire.com
- Hermès International, “Third Quarter 2026 Revenue,” 22 Oct 2026. globenewswire.com
- Prada S.p.A., “Announcement of unaudited revenues for the nine-month period ended September 30, 2026,” 22 Oct 2026. pradagroup.com
- Prada Group, “Prada Group delivers solid 9M-26 performance,” 22 Oct 2026. pradagroup.com
Image credits
No affiliate links. Le Magazine Éclat is affiliated with L’Agence Éclat, a fashion marketing agency.
