Bernstein expects wealth polarisation to drive luxury demand
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;))