Hermes International Societe en commandite par actions

LVMH Moet Hennessy - Louis Vuitton, Societe Europeenne

Kering SA

Burberry Group plc

The big three luxury companies - LVMH, Hermès and Kering - released their first quarter reports this week, showing a decline in revenue due to the war in the Middle East

"It could all come back in 24 hours": what does the luxury sector expect after the $176 billion collapse?

Shares of luxury companies fell sharply in early trading on Wednesday, April 15, after Hermès, and the day before - the owner of Gucci, <a href="https://oninvest.com/article/prodazi-gucci-upali-na-8-na-fone-vojny-eto-vtoroj-signal-trevogi-dla-sektora-luksa">Kering</a>, reported for the first quarter worse than investors' expectations. Sales of luxury goods are under pressure from the conflict in the Middle East, <a href="https://www.cnbc.com/2026/04/15/kering-stock-q1-earnings-gucci-sales-iran-war-middle-east-luxury.html">writes</a> CNBC. Analysts warn that the recovery of the sector may take longer and be weaker than market expectations.

Luxury stocks fell after weak Hermès reporting amid war in the Middle East

Compagnie Financiere Richemont SA

EssilorLuxottica Societe anonyme

Ferrari N.V.

Brunello Cucinelli S.p.A.

Ermenegildo Zegna N.V.

The recovery in luxury sector stocks, which the market had been waiting for before the US and Israel's war with Iran, is likely to happen after all, according to investment bank UBS. It said there were buying opportunities in the sagging sector despite "significant investor anxiety" over the conflict in the Middle East. The bank recommended taking a closer look at the securities of the owner of Louis Vuitton and six other manufacturers.

"Luxury's 'Magnificent Seven': UBS names stocks worth buying on the downturn

Investor sentiment towards shares of European luxury goods manufacturers is now the most pessimistic for several years, analysts at UBS, Switzerland's largest bank, have warned. According to their calculations, the war in the Middle East may postpone the long-awaited recovery in demand.

Investor pessimism toward luxury stocks has reached a multi-year high

The Middle East is not the largest but an important market for the industry

Luxury stocks have fallen in price due to the U.S.-Iran war. Hermes at a two-year low

Sales of British luxury fashion house Burberry <a href="https://www.burberryplc.com/content/dam/burberryplc/corporate/documents/investors/results-reports/2026/Burberry%20Q3%20FY26%20Trading%20Update%20Press%20Release.pdf.downloadasset.pdf">increased</a> during the holiday period of late 2025-early 2026: buyers actively bought up the brand's signature plaid scarves and trench coats. Demand for Burberry goods was particularly strong in China, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-01-21/burberry-s-sales-rise-over-holidays-as-china-market-picks-up?sref=Y0jVLcFo">reported</a>, noting that the company's latest results have boosted investors' hopes for a recovery in the premium market. Shares of Burberry on January 21 during trading in London in the moment added about 6% - the maximum intraday growth since November 2025. Later, the securities slightly corrected, at the time of publication they are in the plus by 5.6%.

Demand in China has supported Burberry through the holiday season. Shares rose

Sales in the region that includes China rose 3% after falling 5%

Burberry reported sales growth in China. Is everything so rosy in this market?

LVMH's third-quarter results beat expectations across the board, Bernstein notes

Investment banks bet on LVMH. What other luxury stocks does Wall Street recommend buying?

Christian Dior SE

The European Luxury Goods Producers Index posted its biggest daily gain since January 

LVMH shares soared after the report and pulled the entire European luxury sector with it

The company is regaining lost popularity among luxury consumers

Burberry returns to the UK blue chip index after a year. What's next?

Despite the first signs of stabilization, it is not yet possible to talk about the recovery of the luxury sector, says Mario Ortelli, managing director of Ortelli & Co.

Burberry has recorded another decline in sales. Why did its shares soar in value?

Taiwan Semiconductor Manufacturing Company Limited

Netflix, Inc.

JPMorgan Chase & Co.

Despite the flood of news about duties, investors on Wall Street have already gotten comfortable with the so-called TACO strategy - betting that U.S. President Donald Trump will threaten duties but eventually back down and the stock markets will rebound from the decline, <a href="https://www.barrons.com/articles/wells-fargo-citi-netflix-j-j-and-more-stocks-to-watch-this-week-cebf9895?mod=RTA#:~:text=Despite%20a%20flurry%20of%20tariff%2Drelated%20headlines%2C%20investor%20reaction%20was%20muted%2C%20unlike%20in%20April%2C%20as%20Wall%20Street%20has%20become%20comfortable%20with%20the%20TACO%20trade.">writes</a> Barron's.&nbsp;Ahead is the new reporting season, which will test the S&amp;P 500's rally of the past three months.