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. For L'Oréal, the peak came in June 2024, while Hermès finally hit its ceiling in February 2025.

These four milestones are explained by each company's specific situation: Kering struggled earlier than its peers to justify its premium status, hampered by the recurring underperformance of its flagship brand, Gucci. LVMH proved more resilient but was eventually caught out by the normalization of its previously stratospheric growth rates. L'Oréal, characterized by a more defensive profile and lower volatility in preceding years, held its ground longer. As for Hermès, its exceptional performance allowed it to continue its ascent long after its counterparts had stalled. However, the saddlemaker's latest earnings reports indicate that times have become tougher. Its plunge of over 10% this morning, following a Q1 revenue slowdown, is rare enough to warrant significant attention.

Weighting has fallen to around 15%, although remains substantial

What is the current weight of the KHOL stocks? According to our calculations, their share of the CAC 40 (adjusted for free float) has dropped 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, placing it in 25th position. This illustrates the extent of luxury's waning influence within the index. Nevertheless, the KHOL group still carries significant 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.