Europe’s leading luxury goods companies have lost approximately $350 billion in combined market value this year, as investor confidence in a sector recovery weakens.

The downturn reflects continued challenges in important consumer markets, particularly China, where economic conditions have affected demand for high-end products.

French luxury group LVMH, which owns brands including Louis Vuitton, Dior, Tiffany and Bulgari, recently reported weaker-than-expected third-quarter sales in its fashion and leather goods business.

The disappointing performance placed further pressure on luxury-sector shares.

Reuters reported that the ten largest companies in a European luxury stock index had lost around $350 billion in market capitalization since the beginning of the year.

The figure illustrates the scale of the decline affecting some of the continent’s best-known fashion and luxury businesses.

Other major names exposed to the slowdown include Hermès, Kering, which owns Gucci, and Richemont, known for its watches and jewelry businesses.

The companies have faced different levels of pressure, although the broader sector has struggled to regain its earlier momentum.

China’s reduced role as a driver of luxury spending has become a major concern for investors and executives.

Because luxury companies rely on consumers willing to spend on premium fashion, jewelry, and accessories, prolonged weakness in demand could continue to weigh on sales and valuations.

Source: Reuters.