Luxury Goods H2 narrative: key for the sector revival

Research evidence excerpt

Luxury Goods H2 narrative: key for the sector revival

2 July 2026

Luxury Goods EquitiesGlobal Luxury Goods

H2 narrative: key for the sector revival Global

◆ Macro environment is still impacting luxury demand, despite Anne-Laure Bismuth*

renewed product creativity in the sector Head of Consumer Luxury & Sporting Goods HSBC Bank plc

annelaure.bismuth@hsbcib.com

◆ We expect Q2 organic sales to slow slightly sequentially to +44 20 7991 6587

+4.3% on average in our luxury coverage, vs +4.9% in Q1 Akshay Gupta*, CFA

Global Luxury & Consumer Analyst

The Hongkong and Shanghai Banking Corporation Limited

◆ Retain Buys on five stocks under our coverage with no changes akshay.gupta@hsbc.com.hk

to TPs; raise Hold-rated Swatch TP to CHF190 (from CHF180) +852 2974 2980

Vignesh Gopalakrishnan*

Associate

There is demand for luxury where there is wealth creation (US, South Korea) Bangalore

While the macro environment has not changed that much vs Q1, Q2 could be slightly

below the average organic growth rate of Q1. We believe South Korea (c7% of group * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

sales on average in our luxury coverage) could partially mitigate the greater impact from

the Middle East (c5% of sales on average) in Q2. More importantly, the US remains the

clear bright spot, with still solid momentum, which may have sequentially accelerated in

Q2, supported by wealth creation. However, China – another key engine of growth for the

sector – has not really moved vs Q1. On the renewed product creativity side, even though

signs of improvement are shy year-to-date, we remain confident this could come in a

second phase, after the initial phase of creativity reset this year. Additionally, experience