Luxury brand seems to test status quo with hints suggesting return to Russian market

Luxury fashion house Dior could be playing with the thought of returning to the lucrative Russian market despite the ongoing political and economic tensions surrounding the war in Ukraine.

The French brand joined many Western companies in suspending operations in Russia following the outbreak of the war in 2022. However, Moscow-based business daily Kommersant reported this week that the luxury retailer may reopen two flagship stores in the Russian capital within the next few years.

Citing financial statements from Dior’s Russian branch, the outlet reported that the company’s boutiques at the prestigious GUM shopping mall on Red Square and on Stoleshnikov Lane could resume operations by January 2028.

Although Dior scaled back its presence in Russia after the full-scale war in Ukraine, it still held four stores in the country as recently as 2024, according to the outlet. The report added that the company continues to lease several retail locations in Moscow, with Dior signage still displayed on the premises — suggesting the brand may be waiting to relaunch operations “after the geopolitical crisis subsides.”

The publication also noted that Dior’s Russian branch reported a net loss of 120 million rubles (approximately €1.3 million) last year, compared with a net profit of 1.38 billion rubles (around €15 million) in 2021, before the war began.

In 2024, Christian Dior Couture Stoleshnikov LLC — the company that manages Dior’s operations in Russia — renewed its trademark registration in the country until 2034. While the fashion boutiques remain closed, the company continues to maintain a presence in Russia’s cosmetics market. Brands under the group, including Dior, Guerlain and Acqua di Parma, are still sold through several local beauty retailers.

Retail experts told Kommersant that Western luxury brands are likely to return to Russia sooner or later, noting that such brands historically recorded strong sales in the country and that demand for luxury goods remains high.

Industry analysts also told the outlet that discussions about resuming operations in Russia occur regularly among international brands, although the final decision ultimately rests with corporate headquarters.

Should Dior officially return to the Russian market, analysts believe other luxury brands could follow. However, a full return would likely depend on the easing of sanctions and restrictions currently imposed on Russia. Under existing EU measures, for example, the export of clothing and accessories worth more than €300 per item to Russia remains prohibited.

By Nazrin Sadigova