Forget the China gloom — luxury bosses say shoppers are back

Chinese shoppers are returning to luxury. Top executives from Prada, Coach, EssilorLuxottica and Value Retail told CNBC they’re seeing demand in China stabilize after months of weakness, even as the broader luxury sector continues to report softer spending among Chinese consumers at home and overseas.

China was on track to become the world’s largest luxury market during the coronavirus pandemic, but the sector has slowed sharply since then. High youth unemployment, a prolonged property downturn and weaker household confidence have weighed on discretionary purchases, particularly among middle-income shoppers.

Speaking to CNBC’s Charlotte Reed at the JPMorgan Global Luxury and Brands Conference in Paris, France, executives said they are beginning to see a change in spending patterns. Andrea Bonini, chief financial officer of Prada Group, said the company is “cautiously optimistic.”

“We do see things stabilizing, indeed,” Bonini told CNBC, adding that “the structural trends in this industry are still there, and are still there in China as well.”

Prada’s CFO said a more “normalized” backdrop may only emerge in 2026 after the sharp swings that followed the pandemic.

Coach is also seeing strong momentum. CEO and brand president Todd Khan told CNBC: “We had a fabulous quarter. Our China business grew by 20%,” a trend he said has held for several quarters. Coach’s positioning has helped attract a more cautious consumer, he said, adding: “Our sweet spot in China, particularly if the consumer is more cautious, really resonates.”

The company is deepening its on-the-ground presence, with 25 years in the market, co-design studios in China, and expansion in regional hubs such as Wuhan. Coach has also been somewhat insulated from U.S. tariff exposure.

“So, 40% of our growth is international. So, for international, those U.S. tariffs that you’re referencing have no impact,” Khan said.

LVMH, for its part, has pointed to early signs of stabilization. Last month, the luxury giant reported 1% growth in the third quarter — its first quarterly increase this year — with CFO Cécile Cabanis telling analysts that “mainland China turned positive in Q3,” according to Reuters.

Still, analysts have warned against assuming a full rebound.

Chiara Battistini, JPMorgan’s head of European luxury, told CNBC it is “early to call it a turnaround and a complete inflection,” noting that the apparent improvement came against “a particularly easy” comparison…