Luxury Brands Face Profit Slump Despite Man Bag Trend Fueled by Soccer Stars

High-end fashion houses Hermès and LVMH are poised to report stagnant or declining profits in the coming week, a trend that persists despite a notable rise in the popularity of luxury man bags, particularly among professional football players.

The costly man bag has emerged as a product with significant promise in the post-World Cup era, with stars frequently showcasing their collections. Norwegian striker Erling Haaland has been pictured with his extensive collection of large Hermès bags, including the HAC 40 Birkin, valued at over £37,000. Fashion analytics firm Launchmetrics estimated that images of Haaland with his Birkin bags generated approximately £6.6 million in brand value for Hermès. However, analysts predict Hermès's profits for the first half of the year to be €2.2 billion, a slight decrease from the €2.25 billion reported in the same period of 2025.

Similarly, LVMH, the luxury conglomerate that owns brands such as Louis Vuitton and Dior, is expected to report a profit decline to €5.4 billion from €5.7 billion for the same six-month period. This projection comes despite endorsements from high-profile athletes like England midfielder Jude Bellingham, who has generated an estimated $1.1 million for Louis Vuitton as a brand ambassador. French forward Kylian Mbappé is also credited with creating an estimated $1.3 million in value for Dior by carrying his training gear in the brand's £4,500 Normandie tote bag.

These profit forecasts offer little solace to the luxury giants as they contend with efforts to revitalize demand. The companies are facing headwinds from decreased sales in the Middle East, exacerbated by geopolitical tensions, and a slowdown in the significant Chinese market. A positive note comes from increased demand among affluent customers in the United States, with American men showing growing interest in luxury bags like the Birkin. Nevertheless, this demand has not translated into momentum for the companies' stock prices, which have fallen significantly this year. LVMH shares have dropped 29% since January, while Hermès shares are down 23% over the same period.

Both Hermès and LVMH may be looking to the recent performance of British brand Mulberry for a potential turnaround. Mulberry reported a sharp narrowing of its losses for the year ending in March to £8.9 million from £32 million, attributed to an improvement in sales.