The world’s top luxury good firms are seeing sliding margins with some now loss-making as a result, a new study from Inverto (part of Boston Consulting Group) shows. Inverto looked at 20 of the world’s biggest groups and found profit margins have fallen from an average of 24% in 2022 to 13%. The biggest chunk of that decline came between 2022 and 2023 when margins fell to 16% but they've continued to slide since then. Ten of the 20 companies have seen their profit margins fall over the last few years and another five businesses are loss-making. It is a particularly interesting subject at present given that there’s a lot of discussion around whether luxury strategies to raise prices in the face of higher costs have gone too far and are deterring the aspirational customer in particular. And it's also an issue given that rents on key luxury shopping streets such as Bond Street, Via Montenapoleone, Rodeo Drive and Fifth Avenue are rising again.