Only a few years ago, the "KHOL" stocks—as dubbed by AlphaValue—accounted for roughly a quarter of the CAC 40. This was the golden age of luxury. Kering reached its zenith in August 2021, followed by LVMH in April 2023. L'Oréal peaked in June 2024, while Hermès finally hit its ceiling in February 2025.

These diverging timelines reflect the specific circumstances of each firm: Kering was the first to struggle in justifying its premium status, weighed down by the persistent underperformance of its flagship brand, Gucci. LVMH proved more resilient but was eventually caught out by the normalization of its previously breakneck growth rates. L'Oréal, benefiting from a more defensive and less volatile profile in prior years, held its ground longer. As for Hermès, its exceptional operational performance allowed it to continue its ascent long after its peers had stalled. However, the saddlemaker's latest releases suggest that times have become tougher. Its plunge of over 10% this morning, following a sharp deceleration in first-quarter revenue, is a rare enough event to warrant serious attention.

Weighting retreats toward 15%, yet remains substantial

What is the current weight of the KHOL group? According to our calculations, their combined share of the CAC 40 (adjusted for free float) has retreated to 15.2%. LVMH is now the third-largest constituent of the index (6.44%, trailing Schneider and TotalEnergies), while L'Oréal (4.7%) and Hermès (3%) rank 9th and 13th, respectively. Kering now represents just 1.1% of the Paris benchmark, languishing in 25th position. This illustrates the significant erosion of the sector's influence within the index. Nevertheless, the KHOL stocks still carry weight, particularly if one includes EssilorLuxottica (3.55% of the index, 12th position), where the luxury segment remains a key valuation driver.

The debate has now shifted to whether the growth levels that crowned these companies as the market leaders of the 2010s will return in the near future. For the time being, the market's answer is a resounding no.