Luxury Gets Pricier, Stocks Go on Sale: What’s Your Move?
Luxury brands are ramping up their price hikes. Since the start of the year, Louis Vuitton, Hermès, Gucci, and Chanel have all announced yet another round of price increases. But rather than scaring consumers away, these brands seem to be fueling even more demand. With every rumor of a price hike, long lines form outside boutiques, and popular items often sell out quickly.
1. People Buy More Luxuries as Prices Soar?
Luxury brands are effectively raising the barrier to entry. While some casual consumers are stepping back, high-net-worth individuals—the core customer base—remain largely unaffected by economic swings and continue to buy. In fact, price hikes often enhance perceived value, reinforcing brand loyalty among these shoppers.
Top-tier luxury goods like high-end watches, jewelry, and art are increasingly seen as appreciating assets. Industry giants like Hermès, Chanel, and Louis Vuitton strictly avoid discounts and instead rely on consistent price increases to maintain exclusivity and premium brand image.
Classic designer bags are particularly known for their strong resale value and liquidity. Many consumers now view luxury purchases as a form of investment. For example, Chanel’s iconic CF flap bag has seen its price climb to 84,000 RMB (~$11,500). Since 2019, its price has jumped from 30,000 RMB to 80,000 RMB—a 166.7% increase. Some say it’s more profitable than investing in stocks.
However, unlike stocks, luxury bags may lose up to half their value instantly on the resale market.
2. Rising Prices, Falling Profits & Stock Prices?
Luxury brands have aggressively raised prices—but instead of boosting profits, it is backfiring.
From a stock performance standpoint, only $Hermes International SA(HESAY)$ and $Compagnie Financiere Richemont AG(CFRUY)$ (which owns Cartier and Van Cleef & Arpels) have stayed in positive territory this year. Shares of LVMH, Prada, and Kering have each dropped over 10%. Even Richemont, despite a 4% revenue increase to €21.4 billion in FY2025, saw a 23% sales plunge in China, its biggest single market, dragging down total Asia-Pacific revenue by 13%.
Meanwhile, a new Chinese luxury brand, Laopu Gold, has surged 245% this year, highlighting shifting trends in luxury consumption.
LVMH revenue fell 3% year-over-year to €20.31 billion, missing analysts’ expectations of €21.14 billion (a projected 2% YoY increase).
Chanel's net profit plunged, with revenue down 5.3% to $18.7 billion—making it the weakest performer among the top three brands. Its operating profit dropped 28% to $4.5 billion.
Hermès reported revenue of €15.17 billion, with constant currency growth of 14.7%.
Would you invest in luxury?
Stocks or the products themselves?
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With stocks, I get exposure to global markets and brand performance without worrying about physical depreciation or market demand for a specific item. Plus, the recent dips in luxury stock prices present interesting opportunities—especially for long-term investors who believe in the resilience of these iconic brands.
Still, I do think it’s fascinating how price hikes are driving demand. Just not my strategy.
@Tiger_SG @TigerStars @Tiger_comments @Daily_Discussion
The rest is not in my list cos most of us consider a parts of investment portfolio. @koolgal @HelenJanet @SR050321 @SPOT_ON @MHh What Branded you guys have?
Instead of buying Luxury goods, I prefer to travel, creating indelible memories to last a lifetime.
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub
would probably buy more stocks than luxury products [Grin] [Grin] [Grin]
Top-tier luxury goods like high-end watches, jewelry, and art are increasingly seen as appreciating assets. Industry giants like Hermès, Chanel, and Louis Vuitton strictly avoid discounts and instead rely on consistent price increases to maintain exclusivity and premium brand image.
Would you invest in luxury?
Stocks or the products themselves?
leave your comments on this post to win tiger coins~
原因很简单，奢侈品产品虽然保值，但它本质是“消费”，不是“资产”。一只爱马仕铂金包虽然几年后还能卖个不错的价格，但它背后的流动性差、保养成本高，且不具备真正意义上的“复利增长”。相反，奢侈品公司，比如LVMH、爱马仕，它们的品牌力、定价权和全球市场布局，才是值得长期持有的价值。
不过话说回来，奢侈品牌今年集体涨价，却没换来预期的利润增长，这也让我开始重新评估它们的估值合理性。特别是一些品牌，比如Gucci，在品牌调性模糊、年轻用户流失的背景下，业绩承压，我会选择减仓。但像爱马仕，依旧维持稳定的毛利率和忠诚客户群体，我会保留核心仓位，继续观察中国市场的复苏情况。
总的来说，我更愿意“投品牌，不投包包”。股票能为我带来的是长期的分红和资产增值，而不是衣柜里一只涨价了但卖不出去的包。
wow very good