The spring/summer 2027 shows in Milan and Paris took place against a difficult business backdrop. Reuters reported that the luxury slowdown appeared to be getting worse as war in the Middle East fuelled inflation and squeezed shoppers’ budgets, while demand for high-end handbags was already fading.
Federico Bazzani, a partner at Deloitte Advisory, told Reuters that fewer than half of brands were growing. Brands face a choice, he said, between investing in innovation, customer experience and cultural relevance to justify their prices, or revising prices and accepting lower margins. Studies by Bain and other consultancies show middle-class shoppers spending less on luxury.
Tod’s chairman Diego Della Valle expected this year and next to be ‘a holding period while the market stabilises’, and OTB chairman Renzo Rosso said he saw no imminent recovery, as consumers shift spending towards wellness, travel and restaurants. LVMH shares were down 37% since the start of 2026.
In Italy, the Camera Nazionale della Moda Italiana forecast a further 1.6% fall in fashion turnover for 2026; its president Carlo Capasa said it would be ‘a miracle’ if the sector held its ground.
Sources
Photo: Via Montenapoleone, Milan’s luxury shopping street. FlavMi, Wikimedia Commons, CC BY-SA 3.0.
