UBS Forecasts a Rebound for European Luxury After Two Years of Stagnation
The European luxury goods sector is poised to return to growth in 2026. According to UBS forecasts, organic sales are expected to increase by 5% this year, marking a break from two consecutive years of stagnation. This improvement is particularly based on an expected stabilization of the Chinese market and a creative renewal within the industry.
Stabilization of Chinese Demand as a Key Driver
The stabilization of Chinese demand is one of the main drivers of this anticipated recovery. After a challenging period characterized by sluggish consumption, the Chinese market, historically crucial for European luxury, is showing signs of improvement. Concurrently, the creative renewal observed in the sector also plays a crucial role in growth prospects. These two combined factors allow UBS analysts to foresee a return to positive dynamics for the entire industry.
UBS Upgrades Recommendation for EssilorLuxottica
In this context of sectoral recovery, UBS has upgraded its recommendation for EssilorLuxottica to 'buy'. The Swiss bank forecasts for this group an organic sales growth significantly above the sector average, reaching 10.1% in 2026. This expected performance, which far exceeds the 5% forecast for the overall European luxury goods companies, highlights EssilorLuxottica's unique positioning in a market on the path to normalization.
