European Luxury and Sporting Goods Weekly Timely & Priceless

Research evidence excerpt

European Luxury and Sporting Goods Weekly Timely & Priceless

J P M O R G A N Europe Equity Research

15 May 2026

European Luxury and Sporting

Goods Weekly

Timely & Priceless

The European Luxury Goods sector was -5% this week, sharply underperforming European Luxury & Sporting Goods

ACthe MSCI Europe Index (‘flat%’), giving away most of last week's gains on the back Chiara Battistini

of market volatility amid the ongoing geo-political environment. Burberry (-12% (39-02) 8895-2700

this week, -5% as we write) was the worst performing stock this week, seeing ongoing chiara.x.battistini@jpmorgan.com

profit taking post the FY26 results, despite a good retail LFL (at +5% in Q4) that J.P.(AsiaMorganPacific)SecuritiesLimited plc/ J.P. Morgan Securities

though was mixed by region and missed the high investor expectations coming into

Wendy Liu

the print. While it is encouraging to see the progress on the stabilisation of the (44-20) 3493-9733

business, notably in core product categories, we continue to see execution risk as wendy.liu@jpmorgan.com

Burberry’s work now expands into less core categories such as handbags and J.P. Morgan Securities plc

accessories, notably in a year where competition from leather goods brands should Apurva Vishwaraj

intensify following all the changes in creative designers last year, and the base apurva.vishwaraj@jpmchase.com

becomes tougher from here. Similarly, Ferragamo reported a good trading update J.P. Morgan Securities plc

yesterday, with solid trends in DTC, notably in the US, but it is coming under pressure Victoria Saden

this morning (-4% this week and-15% as we write) as growth across regions showed (44-20) 3493-0435

victoria.saden@jpmorgan.com

mixed trends, and EMEA in particular was particularly penalised by softness in J.P.