According to CoinMeta, the stock prices of major European luxury brands have fallen to their lowest levels in over a decade. The latest financial reports from Hermès and LVMH indicate that the luxury goods industry is unlikely to emerge from its slump in the short term. On Thursday, Hermès’ stock price dropped by 4.9%. The company’s third-quarter sales figures fell short of expectations, and its current stock price is about 27 times its expected earnings, which is far lower than the peak level of around 70 times after the pandemic. LVMH ( LVMH ) reported mediocre performance last week, and its valuation has also significantly shrunk in recent months due to declining sales; its current stock price is about 16 times its expected earnings, at its lowest level in over a decade. As the luxury goods industry has not recovered as expected, the stock prices of both companies have fallen by about 40% this year. Conflicts in the Middle East have caused inflationary pressures and disrupted shopping centers in hubs such as Dubai. Bernstein analyst Maria Metta stated, “The current valuations reflect not only these companies’ underwhelming performance but also the weak macroeconomic environment.” She pointed out that LVMH’s performance is highly dependent on the macroeconomic situation. Meanwhile, Hermès’ investors have also begun to lose confidence in what was previously considered its “stable” business model.