Shares of LVMH and Kering are falling as quarterly sales are expected to drop. According to Visible Alpha, LVMH’s fashion and leather goods division, including Louis Vuitton and Dior, could decline by 6%, while Kering’s Gucci may fall nearly 25%.

Since the start of the year, LVMH shares have dropped 27%, Kering 15%. Meanwhile, Hermes and Richemont remained stable.

The decline is attributed to buyer fatigue with high prices and the threat of 30% import tariffs on EU goods proposed by the Trump administration.

Brands are shifting toward more affordable segments — offering products under $1,000 and focusing more on beauty — but analysts warn of risks to their premium image.

Forecast: LVMH down 3%, Kering down 13%, while Prada and Hermes may grow by 10% due to steady demand and rising Miu Miu popularity.