2 luxury goods stocks to buy in 2026

Industry Overview - The global luxury sector has faced challenges in 2025 due to uneven consumer demand, currency volatility, and a slowdown in key markets like China [1] - Signs of stabilization are emerging as analysts expect easing financial conditions and renewed spending by high-net-worth consumers heading into 2026 [1] Company Analysis: LVMH Moët Hennessy Louis Vuitton - LVMH is the world's largest luxury conglomerate, benefiting from a dominant market position and broad exposure across various segments including fashion, leather goods, jewelry, cosmetics, and wines and spirits [2] - The company's diversified structure allows it to offset weaknesses in one segment with strengths in another, maintaining robust margins through brand equity and pricing power [2] - Analysts expect the fashion and leather goods division to remain a key earnings driver, supported by global demand and continued investment in brands [3] - LVMH's exposure to multiple regions, including the United States, Europe, and Asia, enhances its ability to navigate uneven economic conditions [3] Company Analysis: Compagnie Financière Richemont - Compagnie Financière Richemont is viewed as an attractive luxury stock for 2026, with a strong focus on high-end jewelry and watches [6] - Brands like Cartier and Van Cleef & Arpels are benefiting from resilient demand, as jewelry has historically performed better during economic slowdowns [7] - Richemont is enhancing its operational efficiency and digital capabilities, which could support margins as sales recover [8] - Recent upgrades from major banks indicate growing confidence in Richemont's positioning to capture a recovery in luxury spending while maintaining its premium brand status [8] Conclusion - As macroeconomic pressures ease and consumer confidence improves, both LVMH and Richemont appear well-positioned to benefit from a renewed upturn in high-end demand [11]