Christian Dior SE

Sales of 25 major luxury brands in China fell more than 10% in July compared with the same period last year, after the Chinese government tightened controls on capital outflows and imposed taxes on overseas assets and investment gains. Brands under LVMH such as Louis Vuitton and Dior, as well as Kering's Gucci, Bottega Veneta and Balenciaga, all saw double-digit sales declines, while Hermes swung from growth to contraction, and Chanel and Prada also saw growth slow significantly. Jacques Roizen, co-founder of Foresight Performance Partners, said operators are seeing VIP customers spend more cautiously after the wealth effect diminished, coupled with a tougher tax environment for high earners. The impact has also spread to Macau, where casinos reported June and July revenue fell more than the market expected, as high rollers travelled less and reduced their betting limits.

Prada, Michael Kors, and Alaïa recorded the strongest combined digital brand rankings among soft-luxury names in the second quarter, according to Bank of America's latest Brand Leading Indicator. The indicator ranks 43 soft-luxury brands based on social media followers, online searches, and website traffic, with momentum weighted at 60% and digital presence at 40%. Prada ranked first overall, followed by Michael Kors and Alaïa, while Michael Kors led three-month momentum after Google searches surged from a low base, lifting it from 33rd place in the first quarter. Prada and Alaïa were identified as the strongest brands in the first half of 2026, maintaining consistently high positions across both quarters. Chanel showed the biggest improvement late in the period, climbing from 10th in April to first in June as interest grew around Matthieu Blazy's collection, with Alaïa and Coach ranking second and third for June. Gucci's quarterly momentum ranking improved by 20 places to sixth, supported by stronger US website traffic, online searches, and promotional events, while Saint Laurent rose five positions to 16th, though fellow Kering brand Balenciaga dropped from 13th to 35th. Among LVMH brands, Loro Piana returned to the top 10 at seventh, Louis Vuitton climbed to 10th from 28th, and Dior finished 31st after Chinese search activity weakened. Swatch led hard luxury, helped by online interest surrounding its Royal Pop pocket watch collaboration with Audemars Piguet, with Jaeger-LeCoultre and Tissot placing second and third. Digital engagement across the soft-luxury sector increased 18% year over year, marking a fifth consecutive quarter of acceleration, as Google searches rose 47%, website traffic grew 39%, and Chinese Baidu activity remained down 18%. Excluding unusually strong Google search figures, overall online activity still improved by 7 percentage points from the first quarter, supporting expectations for continued luxury demand recovery led by the US and South Korea.