Opens in a new tab

Breaking news

Luxury’s Reality Check: LVMH Crash Exposes Sector’s Fragile Foundation

A sharp drop in first-quarter sales sent LVMH shares into freefall on Tuesday, shaving off 8% and wiping billions from the luxury giant’s market cap. The shockwave didn’t stop there — the entire luxury sector stumbled, with major players from Kering to Burberry following suit.

Sales Slump Sends Warning Signal

LVMH, the world’s largest luxury conglomerate, reported a 3% decline in first-quarter revenue — a result that missed even the most cautious analyst forecasts. The steepest blow came from its wine and spirits division, down 9%, driven by dwindling cognac demand in both the US and China. Geopolitical friction, particularly between Beijing and Washington, continues to cast a long shadow over the global luxury market.

But the pain didn’t stop at the bar. LVMH’s flagship fashion and leather goods segment — which accounted for nearly 80% of the group’s 2024 profits — fell 5%, while watch sales flatlined.

The geographical breakdown paints a similarly grim picture: sales in Asia (excluding Japan) fell 11%, the US slipped 3%, and Japan dipped 1%. Europe was the only bright spot, posting a modest 2% organic growth.

Analysts Sound The Alarm

Citi analysts Thomas Chauvet and Mahesh Mohankumar didn’t sugarcoat the situation. “There is little reason for optimism,” they told CNBC, noting that LVMH’s results were “generally below the most conservative expectations.” The road ahead doesn’t look smoother, with the duo expressing doubt that the second or third quarters will deliver a rebound — especially as macroeconomic clouds loom over global markets.

Domino Effect In The Luxury Sector

The fallout was swift and widespread. Kering fell 2.5%, Burberry 4.2%, and Richemont dropped 2.26% in early trading, despite broader market gains. Meanwhile, Jefferies slashed its price target for LVMH from €670 to €510, signalling dimmed expectations for the sector leader.

LVMH, which owns iconic brands like Louis Vuitton, Moët & Chandon, and Hennessy, was the first luxury powerhouse to report Q1 earnings after former President Donald Trump reignited fears of retaliatory tariffs — a policy pivot that could shake the luxury industry’s already fragile supply chains.

Uncertainty Clouds The Outlook

Investors are now bracing for the potential knock-on effects of trade tensions — higher raw material costs, disrupted logistics, and unpredictable consumer behavior. LVMH CFO Cécile Cabanis acknowledged the volatility, telling analysts that conditions were “changing every hour,” according to Reuters.

While premium brands are typically more insulated from price shocks — their affluent customers less price-sensitive — analysts warn that a full-blown trade war or global recession could cripple luxury demand, particularly in the US and China.

The Bottom Line

Once seen as recession-proof, the luxury industry is now grappling with a new reality: a volatile global economy, geopolitical tensions, and shifting consumer priorities. LVMH’s stumble isn’t just a bad quarter — it’s a signal that even the most iconic names in fashion and luxury aren’t immune to the world’s growing economic instability.

Dictionary.com Names ‘Maxxing’ Its Word Of The Year For 2026

Dictionary.com has named “maxxing” its Word of the Year for 2026, reflecting a growing online trend of optimising almost every aspect of life, from health and appearance to work and leisure.

The choice follows last year’s selection of “6-7”, a phrase popularised by younger internet users. Unlike that expression, “maxxing” has spread beyond niche online communities into everyday social media language.

From “Looksmaxxing” To Mainstream Usage

Derived from “maximising”, “maxxing” describes doing something to the fullest or optimising it as much as possible. According to Dictionary.com, its roots lie in phrases such as “maxing out” a credit card and gaming terminology.

During the 2010s, the term gained traction in manosphere and incel communities through “looksmaxxing”, referring to efforts to improve physical attractiveness through fitness, grooming and, in some cases, more extreme measures.

The word later became associated with controversial manosphere influencers, including livestreamer Braden Peters, known as Clavicular, who promotes an intense focus on male appearance.

A Broader Meaning

Younger social media users have since expanded “maxxing” beyond its original associations. Searches for the term surged in August as it became a label for everything from wellness routines to workplace habits. It is also used ironically to poke fun at the pressure to constantly improve.

“Maxxing is the linguistic manifestation of a culture increasingly preoccupied with getting the most out of everything,” said Steve Johnson, director of lexicography for Dictionary Media Group at IXL Learning.

Johnson noted that the term can signal enthusiasm for self-improvement, exaggerate it for humour or reject the idea of constant optimisation altogether. Examples include “proteinmaxxing” at breakfast, “tokenmaxxing” with AI tools at work and “cozymaxxing” on a Friday night.

The Many Forms Of “Maxxing”

The term has generated numerous variations. “Softmaxxing” refers to relatively modest appearance improvements, such as a new haircut, while “hardmaxxing” describes more extreme approaches, including severe dieting or cosmetic procedures. “Jestermaxxing” involves using humour to gain social acceptance or online attention, while “sleepmaxxing” focuses on improving sleep quality or duration.

These variations show how the language of optimisation has spread across personal identity, health, social status and leisure.

The Pressure To Do More

The popularity of “maxxing” also reflects a wider tension between self-improvement and the expectation to make every activity more productive. In the workplace, “tokenmaxxing” describes employees being encouraged to use AI tools as much as possible, turning technological adoption into another measure of performance.

The term captures a culture in which ordinary activities can become opportunities for measurable gains, even as some people use the language to question that pressure.

Other Words On The Shortlist

Other candidates for Dictionary.com’s 2026 Word of the Year included “affordability”, “data center”, “odyssey” and “unc”.

Interest in “odyssey” may have been boosted by Christopher Nolan’s film The Odyssey, while “unc”, short for “uncle”, is used by Gen Z and Gen Alpha to describe someone older who is perceived as out of touch or uncool.

“Maxxing” ultimately stands out for capturing a defining online impulse: to optimise everyday life, share the process and keep striving for more.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter