Luxury Goods Signs of marginal improvement

Research evidence excerpt

Luxury Goods Signs of marginal improvement

21 May 2026

Luxury Goods EquitiesGlobal Luxury goods

Signs of marginal improvement Global

◆ Luxury demand is likely to be in line if not slightly better vs

Anne-Laure Bismuth*

Q1 with improved product, retail, and marketing initiatives Global Consumer Analyst

HSBC Bank plc

annelaure.bismuth@hsbcib.com

◆ US and Korea remain strong, Europe and Japan slightly +44 20 7991 6587

improving, China stable, Middle East expectedly worse Akshay Gupta*, CFA

Global Luxury & Consumer Analyst

◆ Cost efficiency remains a key priority, without compromising Theakshay.gupta@hsbc.com.hkHongkong and Shanghai Banking Corporation Limited

on consumer facing investments +852 2974 2980

Vignesh Gopalakrishnan*

Associate

Bangalore

Some signs of slight improvement

We hosted 20 corporates this week at our annual Luxury conference in Paris. Given * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

geopolitical tensions and a challenging macroeconomic environment, initial not registered/ qualified pursuant to FINRA regulations

expectations from investors were not high. However, companies sounded

constructive, and it seems sales momentum so far is at least in line, if not slightly

better vs Q1. First, there is more clarity on the potential impact from the Middle East

conflict, which is likely to impact organic sales growth by c2% in Q2 (vs c1% in Q1

26) with traffic trends getting less negative (vs March). Second, the US remains

strong and China is somewhat stabilising if not slightly improving.Third, there are

some green shoots in Europe with spending from American tourists, leading to

sequential improvment.

Renewed product creativity is starting to progressively bear fruit