New European regulations prohibit luxury brands from destroying unsold inventory as of May 2, 2026. These rules mandate a strategy shift for major players like LVMH. LVMH reported multi-billion-euro provisions for unsold goods in 2023.
The regulations introduce fines and digital product passports. The industry must now develop alternative systems for managing excess stock. This transition addresses the risk of brand dilution from discount channels. Burberry previously disclosed destroying £28.6 million in goods.