The luxury handbag market is experiencing a significant downturn, with sales falling by nearly $8 billion from a peak in 2023. [18] Major conglomerates are feeling the impact; LVMH's key fashion and leather goods division saw a 2% organic sales decline in the first quarter of 2026, while rival Kering has been hit harder, with its revenue continuing to fall, driven by deep slumps at its flagship Gucci brand. [2, 6, 17]
The slowdown is attributed to several factors, including persistent economic uncertainty and a pullback from aspirational buyers who are increasingly priced out or shifting preferences. [10, 11, 21] Shoppers are gravitating towards understated “quiet luxury” and a booming second-hand market, which has seen sales increase and now poses direct competition to new products from the brands themselves. [18, 24]