Belgian luxury is faltering, and the crisis hasn’t spared Delvaux. One of the world’s oldest leather goods brands has received financial support from its parent company Richemont in order to continue operating. The slowdown in Asian markets has negatively affected sales, which is now working on diversification of its sales areas to reduce its dependence on China and Korea.
Belgian luxury is faltering
Belgian brand Delvaux is going through a difficult period, caused by the sharp slowdown in the Chinese and Korean markets that had driven its growth in previous years. According to Glitz.Paris, Delvaux Design Coordination and Finance, the holding company at the head of the brand, recorded a loss of €1.8 million in the last financial year, between April 2024 and March 2025. This loss was reduced thanks to a substantial non-recurring profit of almost €20 million from the Hong Kong subsidiary. Last year, without Hong Kong, Delvaux would have recorded a loss of almost €40 million. And in 2023, the deficit was already €26 million. Overall, the Belgian company’s accumulated losses now amount to nearly €80 million, with the company’s debt exceeding €100 million because Delvaux’s parent company, the Swiss conglomerate Richemont, obtained a bank loan without which the Belgian company would not have been able to meet its obligations.
Diversifying markets
According to Glitz, Delvaux’s difficulties are largely attributable to the performance of its two key markets: China and Korea. In just over a decade, these markets have gone from being drivers of growth to struggling areas on Delvaux’s business. CEO Jean-Marc Loubier wants to diversify the company’s markets to reduce its dependence on China and Korea, which is why, in mid-November, Delvaux exhibited an installation dedicated to Saul Steinberg in its New York boutique. “We are experiencing very dynamic growth. We plan to continue this expansion, with projects in Miami and Dallas “, Loubier told WWD.
Photo from Delvaux
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