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

03 July 2026

European Luxury and Sporting

Goods Weekly

Timely & Priceless

The European Luxury Goods sector was flat this week, slightly underperforming European Luxury & Sporting Goods

ACthe MSCI Europe Index (+1%). EssilorLuxottica (+6%) bounced back as sentiment Chiara Battistini

improved after last week’s sell-off. Despite concerns on wearables growth, we think (39-02) 8895-2700

consensus is increasingly reflecting fairer and less ambitious expectations, while chiara.x.battistini@jpmorgan.com

instead EssilorLuxottica continues to stand out for the most advanced and diversified J.P.(AsiaMorganPacific)SecuritiesLimited plc/ J.P. Morgan Securities

product offering in the category. Pandora (+7%) also continued to outperform on a

Wendy Liu

broker upgrade and on positive previews, reflecting improving margins following (44-20) 3493-9733

recent silver price moves. On the other hand, Kering (-6%) underperformed the most, wendy.liu@jpmorgan.com

as Q2 previews this week flagged expectations of a slower-than-expected margin J.P. Morgan Securities plc

recovery. This week, we previewed EssilorLuxottica, Kering, Pandora, Zegna Apurva Vishwaraj

(+2%), Prada (+3%) and Ferragamo (+1%) into Q2 results. In line with the rest of apurva.vishwaraj@jpmchase.com

the sector, we continue to expect gradual sequential improvement in DTC across J.P. Morgan Securities plc

luxury names (see more inside this weekly). The sector newsflow out this week was Victoria Saden

mixed with: 1) Japan department store sales for June decelerated sequentially, (44-20) 3493-0435

victoria.saden@jpmorgan.com

despite broadly easier comps. In contrast, duty-free sales continued to improve, albeit J.P.