Luxury – one of the best stock market sectors since the start of the year

Comments on the luxury sector

Christina Carlsten, Piguet Galland & Cie SA fund analyst and manager

Contact us
Low Quality JPG - Piguet Galland Genève Juillet 2022-34

Historic highs for the luxury sector

The luxury sector has put in one of the best stock market performances so far in 2023. LVMH, Hermès and Moncler have all gained around 30% since the start of the year and are nearing their all-time highs. LVMH also became the first European company to surpass USD 500 billion in market value.


The sector has been making the most of China’s reopening. Luxury goods companies were eager to get back to their Chinese customers after two years of pandemic-related lockdowns. Moncler, for example, is very well positioned: it draws 20% of its business from the Greater China region and enjoys strong brand recognition across Asia Pacific markets. What’s more, its low exposure to the US market, which had weighed on the company’s growth in recent years, should now become a good thing as US demand slows.

The luxury sector’s Q1 results have far exceeded analysts’ expectations. But we think the sector’s market trend may have got ahead of itself, with investors becoming overly optimistic in the short term. Moncler, for instance, published excellent Q1 results, but a 23% increase in sales was not enough to keep investors happy. We therefore think it makes sense to wait a while longer before taking new positions in the sector, whose fundamentals remain positive over the longer term.


Would you like to know more about our investment solutions? Learn about our Q2 2023 investment strategy or contact one of our advisors.




Comments on the luxury sector
Christina Carlsten, Piguet Galland & Cie SA fund analyst and manager


The Piguet Galland & Cie SA website (the "Site") describes the activities of Piguet Galland & Cie SA in Switzerland. Piguet Galland & Cie SA does not offer its services outside of Switzerland, and the Site is meant solely for individuals and legal entities domiciled in Switzerland, along with existing clients of Piguet Galland & Cie SA.

Personal informations
As our services are only available to Swiss residents, the choice of country of residence is not available.
You must accept the terms of use.
* required fields