The most exclusive luxury brands are starting to feel the pinch—especially those that pushed prices too far during the pandemic, The Wall Street Journal writes.
Christian Dior and Chanel, which hiked prices in excess of 50% from 2020 to 2023, both reported notable revenue declines. Dior underperformed within parent company LVMH’s fashion division, while Chanel saw sales fall 4% and profits plunge nearly 30% in 2024.
By contrast, Hermès and Richemont (owner of Cartier) posted solid 7% sales growth in early 2025. Analysts point to pricing strategy as a key differentiator: Hermès and Richemont were more restrained during the pandemic boom and are now benefiting from consumer backlash against “greedflation.”
Chanel hasn’t raised U.S. prices since March 2024, signaling caution after years of semi-annual hikes. But slashing prices risks tarnishing brand prestige, so most luxury houses may opt to wait out inflation and roll out lower-priced offerings instead.
