General Retail & Luxury Weekly: Retail & Luxury Look of the Week

Research evidence excerpt

General Retail & Luxury Weekly: Retail & Luxury Look of the Week

Deutsche Bank

Research

Europe Industry Date

22 June 2026

Retail General Retail &

Retail - Non Food Industry Update

Luxury Weekly

Retail & Luxury Look of the Week

Adam Cochrane

The week in one page Research Analyst

This week saw some relief on the geopolitical stage with crude oil price down +44-20-754-17812

almost 10% on the week and only up c.15% from before the conflict. This has seen

Benjamin Yokyong-Zoega

attention move more back towards the usual consumer factors of interest rates and Research Analyst

discussion on the weather. The weaker tourism expected across the luxury space +44-20-754-12338

in 2Q is already starting to look less bad with Middle Eastern and US tourism picking

Do-Hyun Yoo

up. It does feel like we are past the low point in the Luxury cycle with more risk of

Research Associate

upgrades than downgrades from here. There has been some further strengthening

+44-20-754-19487

in the USD which supports the European exporters to a greater degree (Luxury and

Inditex) rather than the Asia manufacturers (Retail and Sporting Goods). The Shwetha Ramachandran

weather debate rumbles on with M&S reminding investors of a colder, wetter April Research Associate

than last year although the expected heatwave in the UK and Europe should be

putting this to bed. The UK inflation print was slightly lower than expected although

this was not supportive for the food retailers with Tesco reporting a slightly weaker

than expected UK LFL.

This week saw the Luxury sector -1% to +2% with Richemont and Hermes +2%

given the larger exposure to the Middle East, and Pandora +2% (helped by lower

silver prices). At the weaker end Zegna was -6% (competitor downgrade and