Investors are reluctant to increase exposure to luxury stocks due to the lack of visibility, even though the sector is now trading below its 5- and 15-year averages versus the MSCI Europe, they said. A UBS industry basket has fallen 17% this year and is close to levels last seen in April 2025 when US President Donald Trump announced sweeping tariffs.
(March 16): Investors have adopted the most pessimistic outlook on European luxury stocks in years as the war in the Middle East threatens to delay a long-expected rebound in demand, according to UBS analysts.
Signs of stabilisation in the final quarter of 2025 and opening weeks of this year have given way to fears that geopolitical shocks will weigh on earnings, analysts including Zuzanna Pusz wrote in a note Monday. Companies fret that higher energy prices and reduced consumer confidence could hit demand, the analysts said.
