Bernstein expects wealth polarisation to drive luxury demand

Brunello Cucinelli SpA

05/01/2026 09:39

** Bernstein expects wealth polarisation and "buoyant demand at the top" in the next 5-10 years to support luxury stocks, with improving demand trends in China helping the sector from the fourth quarter of 2025

** Richemont CFR.S is its top choice, with the broker saying jewellery appears as better value for money to consumers, with its brands such as Cartier and Van Cleef & Arpels best positioned to benefit

** The broker says quality high-end brands Hermes HRMS.PA, and Brunello Cucinelli BCU.MI should also gain from a shift to high-end luxury

** It says a revival at Dior, a strong Louis Vuitton business and potential growth surprises in the fourth quarter of 2025 should support LVMH LVMH.PA

** It says a shift away from "self-help" justifies Kering's PRTP.PA downgrade in October and favours companies which shifted to cheaper products such as Burberry BRBY.L

 (Reporting by Alessandro Parodi)

 ((Alessandro.Parodi@thomsonreuters.com;))