Luxury could diverge further in 2026, analysts say. Here's how

For the first time in years, analysts are feeling optimistic about luxury. Next year, the sector will finally return to growth, market watchers say, yet companies' performance is likely to diverge based on their level of exposure to different segments of the customer base, making stock picking key for luxury investors in 2026. J.P. Morgan predicts the sector will stabilize in 2026 following a tough 2024 and volatile 2025, with improvements driven by an uptick in Chinese consumer confidence and product innovation. Luxury groups have been contending with notable sales declines over the past two years. Following a post-pandemic boom, companies struggled to gain momentum as consumers held off spending amid higher costs of living and worries about job security. Despite popular belief, the luxur