TIVP102 (Video): Hermès and LVMH Stock: Time to Buy Luxury? w/ Daniel Mahncke & Shawn O’Malley

The luxury fashion market is currently navigating a significant cyclical downturn, primarily caused by macro headwinds and a sharp decline in spending from "aspirational" buyers. These consumers, who previously fueled rapid growth, are increasingly priced out by aggressive price hikes and broader economic cooling. China, once the industry's primary growth engine, faces a severe slowdown linked to a persistent real estate crisis and shifting consumer sentiment, forcing brands to re-evaluate their geographic exposure. While conglomerates like LVMH struggle with declining volumes and profit margins, top-tier houses like Hermes show greater resilience by catering to the ultra-wealthy, who remain largely insulated from economic pressures. With LVMH’s core fashion segment enduring seven consecutive quarters of negative organic growth and the industry losing 70 million customers since 2022, luxury brands must now balance exclusivity with the necessity of maintaining volume in an increasingly uncertain global environment.