Kering SA

Hermes International Societe en commandite par actions

LVMH Moet Hennessy - Louis Vuitton, Societe Europeenne

Compagnie Financiere Richemont SA

Deutsche Bank has allowed a rapid recovery of the European luxury sector in the event of an easing of the conflict in the Middle East, <a href="https://www.cnbc.com/2026/04/02/luxury-stocks-lvmh-kering-gucci-middle-east-iran-conflict.html">writes</a> CNBC. The bank is confident that the current drawdown is temporary and reflects external shocks rather than the fundamental deterioration of companies' business.

Lux companies face 'sharp reversal' in case of de-escalation in Iran - Deutsche Bank

EssilorLuxottica Societe anonyme

Ferrari N.V.

Brunello Cucinelli S.p.A.

Burberry Group plc

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

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

The imposition of new U.S. duties over Greenland could reduce eurozone GDP by about 0.1%, Goldman Sachs has calculated

LVMH and Kering shares fall due to Trump's duties. A quarter of the brands' sales depend on the US

A sharp rise in Richemont quotations at the opening of trading in Zurich was quickly followed by a fall

Cartier owner beats holiday quarter sales forecast. Why did the stock fall?

Optimism in the European luxury sector is increasing, with more and more analysts believing that the rally that started in the second half of 2025 could continue into 2026. The recovery is indicated by strong quarterly reporting from luxury goods manufacturers, a rebound in demand in China and the renewal of creative teams at fashion houses. Key market players, including LVMH and Richemont, are already showing signs of a turnaround after two years of decline.

Analysts expect the luxury market rally to continue in 2026. Who to bet on?

The bank upgraded its recommendation from 'hold' to 'buy' and improved its outlook on key luxury brands for 2026

Deutsche Bank sees 13% upside potential in shares of Cartier's owner

Ralph Lauren Corporation

Salvatore Ferragamo S.p.A.

The list did not include Prada or Hermes, which have been ramping up sales even during the market downturn

Luxury is on the rise: analysts advised on four promising stocks in the sector

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?

Performance across all divisions of the company exceeded analysts' expectations, including the key fashion and leather goods division

Moët and Dior are back in fashion: LVMH's sales are up. What does this mean for the market?

High precious metal prices have been a negative factor for the luxe along with duties and a weakening dollar