Fashion People Champagne Problems
Feb 24, 2026
Luca Solca, Bernstein luxury analyst known for deep luxury-market analysis, breaks down recent earnings for LVMH, Kering, Richemont and more. He discusses Dior and Vuitton dynamics, whether LVMH should spin off Wines & Spirits, Cartier and watch strength, Prada and Versace integration, Gucci’s identity test, and signs of a Chinese middle-class rebound.
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Cost Cuts Don't Replace Topline Growth
- LVMH's cost cuts and working capital improvements boosted the bottom line but couldn't substitute for topline revival.
- Luca says one-off efficiencies won't win long-only investors; they want positive organic growth before re-entering the sector.
Look To Dior For Early Signs Of LVMH Revival
- Watch Dior as a leading indicator for LVMH's recovery because Jonathan Anderson's newness in handbags could restore brand momentum.
- Positive Dior traction plus steady Vuitton strength may push group organic growth back to positive.
Spin Off Wines And Spirits With Clear Governance
- Consider spinning off LVMH's Wines and Spirits to eliminate dis-synergies and broaden investor appeal.
- Luca recommends a structured spinoff with Diageo governance agreements to avoid ownership conflicts.