Live Markets: Luxury: UBS says even small beats may pop

LVMH Moet Hennessy Louis Vuitton SE

30/03/2026 10:54

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LUXURY: UBS SAYS EVEN SMALL BEATS MAY POP

As consumer sectors typically underperform broader equity markets during oil shocks, it is little wonder that anxiety is gripping luxury investors heading into the first‑quarter reporting season.

Yet UBS says it has not seen any evidence so far of a demand slowdown — particularly in Asia — a view reinforced by a ground trip last week.

As a result, and given the sector’s steep de-rating, the Swiss bank expects even modest earnings surprises to be well received.

"Against a backdrop of very negative market sentiment and depressed valuations, we think that even modest Q1 beats could be disproportionately rewarded," says analyst Zuzanna Pusz .

"Fundamentally, we continue to expect sequential improvement for most companies, though selectivity remains critical".

Sector bellwether LVMH LVMH.PA reports quarterly sales in April.

More on the luxury earnings: Luxury in 'slow trot' as tourism and Middle East risk bite

(Danilo Masoni)

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