Overview

• HSBC lifted LVMH and Kering to buy and downgraded Hermès to hold, with the upgraded shares advancing in Paris trading.
• The bank expects a flattish 2025 for luxury, forecasting low-single-digit growth in the second half after a slight first-half decline, driven largely by Chinese consumers reengaging.
• Analysts see cost simplification and margin potential at LVMH and cite a Dior rebound, while warning that Kering’s turnaround under incoming CEO Luca de Meo involves execution risk.
• HSBC highlights the Middle East and select Southeast Asian destinations such as Thailand, Cambodia and Vietnam as meaningful near-term demand supports.
• A new Barclays report offers a more cautious read on China, flagging weak Gucci traffic and watch sales, muted acceleration at Hermès, and relative resilience in Louis Vuitton cosmetics, jewelry maisons, Burberry and Moncler.