Luxury Goods: Progress matters more than speed

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Luxury Goods: Progress matters more than speed

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Luxury Goods

Progress matters more than speed

Industry Overview

Feedback from BofA China Trip 21 May 2026

Last week we went to China and Hong Kong to host a fieldtrip focused on Chinese Equity

consumption, alongside BofA China Conference in Shenzhen. For an overview of the key Europe

feedback from all meetings, see Exhibit 1. See more feedback from the conference Luxury Goods

across sectors in notes from our China team: Day 1, Day 2 and Day 3. Ashley Wallace >>

Soft luxury: sentiment improves but recent data mixed ResearchMerrill LynchAnalyst(Australia)

+61 2 9226 5070

The Chinese consumer represents 29% of sector sales, with revenues flat in 2024 and - ashley.d.wallace@bofa.com

6% in 2025, bringing Chinese consumer growth to +5% CAGR vs 2019, less than half the Daria Nasledysheva >>

growth rate pre-pandemic (13% CAGR 2010-19 and accounting for 40% of incremental Research Analyst

MLI (UK)

sector revenues). Commentary from our fieldtrip suggests that while Chinese consumer +44 20 7996 1087

sentiment has been slowly improving, supported by wealth effect (stock market and green daria.nasledysheva@bofa.com

shoots in the property market, see Exhibit 80 & Exhibit 81), 2QTD Mainland China trends Ronald Leung, CFA >>

Research Analyst

slowed to single-digit SSSG from >10% in 1Q, based on MixC commentary on April & Merrill Lynch (Hong Kong)

May Golden Week, see Exhibit 73. Apr-May Macau GGR also slowed from 1Q although at +852 3508 3728 ronald.leung@bofa.com

least partly driven by low VIP hold, see our note: Macau tour feedback. We think some Karl Choi, CFA >>

consumption is shifting to HK as (1) local malls / Wharf pointed to accelerating trends Research Analyst