While the market overall was up — the S&P 500 gained 23.3 percent for the year, buoyed by a stable economy and lower interest rates — fashion had its mix of winners and losers. Luxury brands in particular were hit hard by the high-end slowdown and weakness in China, delivering share losses to even the mighty LVMH Moët Hennessy Louis Vuitton, which fell 11.7 percent. Other high-end players in turnaround mode, like Kering, Burberry and Versace-owner Capri, were hit even harder.
Nike's New CEO Admits the Brand Has Been Competing With Its Partners, Pledges to Fix Relationships With Foot Locker, JD Sports and More “You could see a lot of those luxury manufacturers suffering in terms of stock price,” said consultant Greg Portell, senior partner and global markets lead at Kearney. “They may have pushed the consumer a bit too far and started to get the value to price equation out of whack.”Luxury brands reaped big rewards as they jacked up prices over the pandemic, when consumers spent big on goods and pulled back on services and experiences. But those companies paid the price in 2024 as even wealthy shoppers began to balk at the level of increases.RealReal Inc. led the fashion pack with its stock jumping 444 percent with a new chief executive officer, a customer looking for luxury at lower prices and some traction with customers and investors after a long slow period. And Tapestry Inc. rose 82.8 percent as its $8.5 billion deal to buy Capri fell apart. On the other side of that transaction, Capri’s stock fell 58.1 percent, feeling not just the pain of luxe, but a serious decline at Michael Kors. “The market rewards growth trajectory almost more than profit and the ability of those companies to seize market opportunity and drive revenue growth is being rewarded in the stock valuation,” Portell said. The larger message Portell drew from a decidedly mixed year for fashion was how a strong management team can help a company pull away from its peer
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