Overview

• HSBC raised LVMH and Kering to buy and cut Hermès to hold, citing an expected pickup in Chinese luxury demand.
• The report forecasts sector sales up about 2.9% on average in the second half of 2025 with a reversion to decent, profitable growth in 2026.
• LVMH shares rose up to 4% and Kering gained as much as 4.6%, while a Goldman Sachs luxury basket added 2.4% yet remains more than 20% below its February peak.
• Analysts see scope for LVMH to simplify costs and lift margins, while warning of transition risk at Kering under incoming CEO Luca de Meo starting Sept. 15.
• HSBC notes near-term U.S. pressure and uneven brand momentum, and points to product and regional offsets including Louis Vuitton’s beauty push and strength in the Middle East and select Southeast Asian destinations.