2026 a 'make or break' year for luxury, DB says

Burberry

01/12/2025 08:52

** Deutsche Bank says 2026 will be a "make or break" year for European luxury, seeing the sector well positioned for accelerating growth throughout the year

** The analysts forecast sector growth of 6% in 2026, vs 2% in 2025, with a small acceleration in H1 to H2

** "We see tailwinds from new creative designers, new store formats and marketing campaigns to help reignite growth," they write in a note, naming Gucci and Burberry BRBY.L as "recovery stories" that should be boosted by this

** LVMH LVMH.PA and Burberry remain DB's most preferred sector names, joined by Swiss watchmaker Richemont CFR.S on stronger-than-expected sales growth

** Least preferred stocks are Kering PRTP.PA and Moncler MONC.MI due to high growth expectations and earnings expectations risks, the brokerage says

** Hard versus soft luxury debate is expected to continue but with less of a sales performance differential, it adds

(Reporting by Marleen Kaesebier)

((marleen.kaesebier@thomsonreuters.com))