Analysts Hope New Designers at Chanel, Dior and Gucci Will Spur Sales

LONDON — Now that the dust — and bits of thread and sequin — have settled on the European runways, the pressure is on brands, designers and merchandisers to deliver “newness” into stores and convince luxury’s increasingly stubborn shoppers to start spending again.

The pressure is on.

The financial analysts are watching every move the big brands and their new designers are making. They are expecting innovation, creativity and freshness, and also keeping a hawk eye on changes in pricing and the value-for-money offer.

With the European fashion weeks coming to a close earlier this week, and buyers still writing their orders, the big banks have expressed their hopes — and concerns — for luxury fashion following the flurry of designer debuts this season.

HSBC was the most bullish, pointing out that what luxury has lacked most over the past 18 months is “customer interest.”

The bank said that, financially, the most important impact expected from fashion weeks is generation of foot traffic, and wondered aloud whether the new collections from Jonathan Anderson at Dior, Matthieu Blazy at Chanel and Demna at Gucci will sell well.

“We have no idea” how the collections will sell, HSBC said. “However, it’s clear more customers will now walk into stores when spring collections arrive. What will make the difference, as usual, is sales associates’ ability to convert that traffic. If Demna’s or Anderson’s collections don’t sell as well as hoped, the idea is to use that traffic to sell something else.”

HSBC said it’s hoping the designer debuts will help luxury recover after 18 disappointing months of sales, due to consumers’ rejection of spiraling prices and a perceived lack of creativity.

“The reality is that consumers needed some retail therapy after COVID-19, but two years later, they are thinking, ‘It’s still the same bag and it’s 60 percent more expensive — I have no reason to go back.’ We’ve just witnessed a creative wave with more than 15 creative directors showcasing for the first time for their new brand in recent weeks. After customers had disengaged, these launches will likely create opportunities to discover, or rediscover, brands,” HSBC said.

It argued that Demna’s broad and inclusive vision of Gucci, where the designer sent out a variety of archetypes for spring, should appeal to lukewarm shoppers. It was only a partial effort, however, as Demna will present his first full runway collection for fall 2026 at Milan Fashion Week in February.

“Demna is essentially saying whatever your gender, age, nationality, budget or style, come to Gucci; we have something for you. The collection is an invitation to rediscover a brand that had perhaps lost its way and become quite invisible. Gucci’s show put the brand back at the center of fashion conversations,” HSBC said.

TD Cowen had a more cautious take on the spring season. The investment bank said it was excited by Dior’s “new creative direction” and Louis Vuitton’s “innovation efforts at entry price points,” a reference to all the fashion jewelry, accessories and makeup priced at 450 pounds or less.

But TD Cowen isn’t getting too excited — at least not now.

“Changes take time, and the U.S. faces a tougher fourth-quarter comparison on last year’s post-election demand surge,” it said.

Regarding China, the investment bank added that spending remains “muted” despite higher foot traffic, reflecting “cautious consumer sentiment.” By contrast, it said China’s outbound tourism began to accelerate in the second quarter of 2025, with double-digit growth in the number of tourists traveling to Italy, Germany and the U.S.

TD Cowen also warned investors to brace themselves for the impact of price increases in hard luxury given the surging price of gold, which hit a record high of more than $4,000 an ounce, the biggest rally since the 1970s.

Bernstein also struck a cautious tone. The bank believes that LVMH Moët Hennessy Louis Vuitton’s “front-foot action on underperforming businesses will eventually bear results.”

It added that Dior is being “reinvigorated” with new creative direction by Anderson, while Louis Vuitton has been quick to pivot from a bigger-is-better approach to a focus on the “new and attention-grabbing.”

Bernstein believes that, going forward, “LVMH will leverage scale to do something different.” It pointed to the opening of The Louis Shanghai cruise ship-inspired concept store; the new Formula One sponsorship, and the recent beauty launch as examples.

Although the price tags of Louis Vuitton Beauty — 120 pounds for a lipstick — may seem exorbitant to some, they’re a relatively inexpensive and easy way into the brand, which charges around 1,400 pounds for a signature Speedy bag.

Bernstein argued that “LVMH is still the first port of call for any new luxury consumer and for many would-be luxury investors,” adding that the valuation continues to move up towards its 10-year average.

It believes that “many of the headwinds facing the luxury industry may well reverse in the coming year, and LVMH has all it takes to hit the ground running. Even in an industry facing parallel structural changes — including a diverging luxury audience and increasing de-globalization — scale remains king, and LVMH wears the crown.”