2024 was a bad year for luxury.
Many of the world's largest luxury companies saw their share prices decline this year as the market for high-end goods experienced a brutal slowdown.
"50 million luxury consumers have either opted out of the luxury goods market or been forced out of it in the last two years," Claudia D'Arpizio, who leads Bain's global luxury goods and fashion practice, wrote in a report last month.
"The negative environment predicted by many in the fashion industry this time a year ago has now materialized," a McKinsey report said earlier this year.
One chart — featuring some of the luxury's most notable companies — shows just how rough 2024 was through mid-December.
Only two companies — Hermès and Richemont, the parent company of Cartier and Van Cleef — managed to beat the STOXX Europe 600, an index that represents a mix of European stocks, this year.
Meanwhile, share prices for LVMH — the largest of the luxury conglomerates and owner of brands like Louis Vuitton and Christian Dior — and Burberry have fallen this year. (Prada and Moncler also slipped, though aren't pictured here.)
Kering, the company behind Balenciaga and Saint Laurent, fared the worst. Its stock price dropped more than 40% this year as its headline brand, Gucci, floundered.
While certain high-end lines suffered from specific pitfalls — Burberry priced their goods too high, Gucci spread itself too thin — the economy at large was to blame for a number of luxury's troubles.
"Many are navigating a momentary crisis, driven by macroeconomic pressures and a polarized customer base," Claudia D'Arpizio, who leads Bain's global luxury goods and fashion practice, wrote in a report.
An economic crisis in China, where real estate sales slumped and unemployment rose, meant a consistent group of luxury shoppers reined in their spending. In America, inflation squeezed the aspirational shoppers who had rushed to buy expensive goods during the post-pandemic spending boom. And in Europe, political uncertainty led consumers to hold off on big purchases.
2025 may be brighter for high-end companies, however.
HSBC analysts wrote in a December note that they believe the third quarter will be the "trough for the sector." Meantime, EMARKETER, a sister company to Business Insider, predicts that personal luxury retail sales will grow 4.1% next year — up from a low of 3.2% this year.
