LVMH and Kering are projected to report a significant drop in quarterly sales, raising concerns about a prolonged downturn in the luxury market valued at $400 billion. The anticipated results, starting with LVMH, indicate that demand for high-end fashion in key markets like the U.S. and China remains weak, exacerbated by potential U.S. import tariffs that could impact pricing strategies. Analysts predict LVMH's fashion and leather goods division will see a 6% year-on-year sales decline, marking its fourth consecutive quarterly drop, while Kering's Gucci brand is expected to report a nearly 25% decrease in sales.

Investor sentiment is shifting as shares of LVMH have fallen nearly 27% this year, and Kering's shares are down 15%. The luxury sector is grappling with 'shopper fatigue' as consumers resist higher price tags, leading to a reevaluation of brand strategies. Brands are now introducing lower-priced products to attract middle-income shoppers, but this approach risks diluting brand prestige. The overall uncertainty in the luxury market, coupled with changing consumer preferences, suggests that companies may need to adapt quickly to maintain their market positions.