Companies reporting sales and profit drops in Q3 2025

The third quarter of 2025 exposed deep fissures within the global fashion industry, characterized by a marked contraction in the luxury sector and ongoing volatility for mid-market retailers. A combination of cooling demand in China, a pullback by aspirational consumers in the US, and the disruptive impact of new trade tariffs created a challenging environment. Heavyweights like LVMH and Kering reported rare sales declines, signalling the end of the post-pandemic luxury boom. Meanwhile, brands undergoing restructuring, such as Allbirds and Asos, continued to shed revenue as they prioritized long-term profitability over immediate volume, highlighting the intense pressure to adapt in a cost-conscious market.