Luxury valuations at risk over structural headwinds, says Berenberg

Brunello Cucinelli SpA

11/06/2026 06:23

** Berenberg says valuations for luxury companies are at risk, citing structural pressures with key consumers such as Chinese and younger customers
** "We remain bearish on the outlook for the luxury sector and see downside risk to revenue estimates," Berenberg says
** The brokerage prefers absolute luxury brands over aspirational ones, warning that a return to past margins could drag price-to-earnings multiples back down to previous norms
** It retains a "buy" rating on French group Hermes HRMS.PA and Italian fashion brand Brunello Cucinelli BCU.MI due to their superior growth dynamics
** Berenberg expects medium-term revenue growth of 3-4% annually for the sector versus a 6-7% consensus estimate, which could trigger a significant margin squeeze
** Stoxx Europe Luxury 10 index .STXLUXP is down 16.2% YTD

(Reporting by Gianluca Lo Nostro)
((Gianluca.LoNostro@thomsonreuters.com))