Luxury brands' stiffest competition is the stuff they have already sold

For luxury brands trying to win back shoppers, secondhand sellers have become a potential nuisance.

- Carol Ryan

Louis Vuitton leads in resale demand.

(BLOOMBERG)

Demand for used luxury is stronger than for new goods at the moment. The RealReal, the world's biggest online luxury reseller, has grown sales by 10% on average over the past 18 months. Its New York-listed stock is up more than 200% in a year. Business at Fashionphile, a large privately owned reseller, is growing above 10% so far in 2025.

Meanwhile, demand for new luxury goods has been flat on average for six consecutive quarters among top European brands. More than a dozen labels have hired new designers in a push to get shoppers back into stores and spending again.

The world's most valuable luxury company, LVMH, is making early progress. This past week, the company said that sales rose 1% in the third quarter compared with the same period of last year, sending the stock soaring on hopes of a recovery.

One headwind for these companies: The resale market seems to have switched from being mildly helpful to luxury brands to a more direct competitor. Previously, shoppers used resale websites to clear out unwanted goods, selling their old clothes and using the cash to make new purchases in the primary market. This boosted the sales of luxury brands.