Analysts see strong luxury market in 2026

Core Insights - The luxury goods and services sector is showing signs of recovery after a slowdown due to consumer spending cuts related to inflation and other economic concerns [1][2] - Positive third-quarter earnings from major luxury brands, particularly LVMH, indicate a resilient consumer demand in the U.S. despite economic uncertainties [2][3] Consumer Behavior - A JP Morgan survey revealed that 60% of U.S. and European respondents are using resale platforms for second-hand luxury goods, indicating a shift in consumer purchasing habits [1] - Analysts note that aspirational luxury consumers still face challenges, but new creative leadership and marketing strategies are expected to help reignite growth [7] Market Outlook - UBS projects that Chinese luxury purchases will grow by approximately 6% in 2026, recovering from a 5% decline this year, suggesting a positive trend for the luxury market [4] - Deutsche Bank anticipates 2026 will be a year of converging growth trends across luxury sectors, with the industry well-positioned for accelerated growth despite challenges in other consumer sectors [5] Company Performance - LVMH and Burberry remain favored by Deutsche Bank, with Richemont added to the list following stronger-than-expected sales growth [6]