Vontobel says luxury sector is cautiously optimistic in tough environment

Swatch groupAG

18/12/2025 07:59

** Vontobel sees an improved sentiment in the luxury sector and expects jewelry to keep outperforming

** "Luxury field trip across France and Switzerland shows cautious optimism," analyst Manuel Lang writes

** He says the tone in talks with representatives from luxury brands, retailers and suppliers was more positive than earlier in the year, helped by China Golden Week sales in Europe

** "Jewelry's outperformance is contrasted by a wide dispersion of watch brand performance in 2025 YTD," Lang adds, however

** Swiss watch exports in November fell 7.3% in nominal terms from a year ago to CHF 2.25 billion ($2.83 billion)

** "While signs of China sales stabilization offer tailwinds to the luxury sector, brands continue to face a tough environment," the analysts concludes

** The broker expects brands with strong pricing power and high-quality, highly desirable products to do well globally, and names Richemont CFR.S one of its top picks for 2026

($1 = 0.7951 Swiss francs)

(Reporting by Linda Pasquini)

((Linda.pasquini@thomsonreuters.com))