Core Viewpoint - The luxury goods industry is expected to show significant polarization in performance by Q2 2025, with an overall decline in organic sales driven by major players like LVMH [1][2] Industry Summary - The global luxury goods market is projected to decline by 3% in organic sales in Q2 2025, worsening from a 1% decline in Q1 2025 [1] - Weak currency exchange rates have diminished the purchasing power of tourists from the US and China, leading to a downturn in travel-related sales [1] - The US market is experiencing a divided demand landscape, with consumer confidence suppressed by tariff concerns since February [1] Company Performance Summary - Kering is expected to see a decline of 15%, while Brunello Cucinelli anticipates a growth of 10% in the same period [2] - Brands like Hermès, Pandora, Burberry, and Hugo Boss are projected to achieve accelerated growth compared to their peers [2] - Richemont's organic sales are expected to remain stable, but market expectations for its EPS from 2026 to 2028 may be overly optimistic [2] Stock Ratings and Projections - Burberry is rated "Outperform" with a target price of €1,370, indicating a 37% upside potential [3] - Hermès is also rated "Outperform" with a target price of €2,880, reflecting a 27% upside [3] - Brunello Cucinelli holds a "Neutral" rating with a target price of €115, suggesting a 15% upside [3] - Hugo Boss is rated "Underperform" with a target price of €32, indicating a 14% downside [3]