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Key Takeaways

• Global luxury spending is projected to grow 3%-5% in 2026 after a flat 2025, following a prolonged slowdown.
• China's luxury demand weakened early in 2025 but stabilized later, fueling hopes of renewed growth in 2026.
• Kering could benefit from a 2026 rebound on Gucci-led portfolio gains in China and emerging markets.

In 2025, the global luxury goods sector faced a prolonged slowdown, hit by economic headwinds, shifting consumer preferences, and geopolitical disruptions, including elevated tariff spillovers from U.S.-China trade tensions.

Going by the Bain & Altagamma Global Luxury Report’s data published in Vogue, personal luxury goods spending is expected to finish 2025 broadly flat at around EUR1.44 trillion ($1.56 trillion) after a contraction in 2024, marking one of the weakest cycles since the Great Recession. In China, historically the largest single luxury market, domestic consumption saw slowing growth, with luxury spending declining amid broader economic softness before stabilizing later in the year.

Despite this tough backdrop, multiple industry forecasts now point to a rebound in 2026, driven by renewed demand in emerging markets, strategic pivots by brands, and early signs of recovery in Chinese consumption patterns. For investors looking beyond the near-term headwinds, several luxury stocks appear positioned to benefit from the next phase of growth in 2026.

Here in this article, we have discussed three such luxury stocks, Kering (PPRUY - Free Report), Compagnie Financiere Richemont (CFRUY - Free Report), and Burberry Group (BURBY - Free Report) that combine global brand strength with U.S. market accessibility and stand to gain from a recovery in emerging market consumption, particularly in China, in 2026.

2026 Global Luxury Outlook: From Flat Performance to Growth

As per Bain’s report, after two years of muted performance, the luxury sector is widely anticipated to grow between 3% and 5% in 2026 on a global basis, a marked improvement from 2025’s flat outcome. Emerging markets are expected to play an increasingly important role in this recovery, with regions such as the Asia Pacific still dominating a larger share of global luxury consumption (holding 39.8% of market share in 2025 as per IMARC).

There are multiple factors behind the potential recovery in 2026. Leading brands are recalibrating their strategies by easing aggressive price hikes in favor of broader product assortments and refreshed creative direction, a shift that could help re-engage consumers and support demand recovery, according to AInvest.

Emerging markets are also expected to drive renewed volume growth as younger, digitally engaged affluent consumers gradually return to discretionary spending. Supporting this outlook, demand signals in China are showing signs of stabilization, with luxury houses increasingly adapting their offerings to local preferences and evolving economic conditions, as noted by Luxury Tribune.

Tariff and Trade Context: Sino-US Dynamics by Late 2025

Trade policy remains a critical factor for luxury goods companies with global supply chains. U.S.-China tariffs are likely to have largely de-escalated, with negotiated reductions expected to remain in place through at least late 2026. This easing of reciprocal trade barriers has reduced a key source of cost uncertainty for manufacturers and consumers alike.

While geopolitical risks have not disappeared, the relative tariff stability provides a more constructive environment for global luxury demand as the sector heads into 2026.

China's Luxury Market: Stabilization in Progress

China remains central to the luxury sector’s 2026 recovery thesis. According to a Mordor Intelligence report, despite demand weakness earlier in 2025, China’s luxury goods market, valued at hundreds of billions of U.S. dollars, is positioned for mid- to long-term growth, supported by an expanding middle class and continued digital retail penetration.

Domestic luxury spending stabilized in the second half of 2025, benefiting high-end brands that have intensified local engagement and refined pricing and product strategies to align with evolving consumer preferences, as reported by Luxury Tribune.

While a full V-shaped rebound is yet to materialize, early signs of improved store traffic and localized demand suggest China could once again become a meaningful contributor to global luxury growth in 2026 and beyond.

3 International Luxury Stocks Positioned to Benefit in 2026

Presented below is a brief overview of luxury stocks that may be worth consideration in 2026.

Kering

Headquartered in Paris, Kering is a major French luxury conglomerate that owns a portfolio of globally recognized brands such as Gucci, Yves Saint Laurent, Balenciaga, Bottega Veneta, and Alexander McQueen.

While demand slowed through 2025, Kering’s solid brand roster and operational scale provided exposure to luxury spending across the Americas, Europe, and Asia. A renewed uptick in Chinese and emerging market demand in 2026 could lift sales for Gucci and other major houses within the group.

The stock currently carries a Zacks Rank #2 (Buy) rating. In 2026, the company is expected to witness earnings growth of 35.2% on revenue growth of 1.4%.

Kering SA Price, Consensus and EPS Surprise
 

Image Source: Zacks Investment Research | Kering SA Quote

Richemont

This Switzerland-based luxury goods company operates through Jewellery Maisons, Specialist Watchmakers, and Other segments with brands like Cartier and Van Cleef & Arpels. Richemont’s jewelry division has been one of the most resilient segments within the broader luxury market.

While demand in China has remained softer, Richemont’s diversified geographic footprint and robust U.S. jewelry performance provide an important counterbalance. Earlier tariff-related headlines had weighed on Richemont’s share price as Swiss exports faced potential duty increases, but easing tariff uncertainty by late 2025 may help alleviate this pressure heading into 2026.

The stock currently carries a Zacks Rank #3 (Hold) rating. In fiscal 2027 (ending March 2027), the company is expected to report earnings growth of 10.3% on revenue growth of 6.8%.

Compagnie Financiere Richemont AG Price and Consensus
 

Image Source: Zacks Investment Research | Compagnie Financiere Richemont AG Quote

Burberry

This is a UK-headquartered luxury fashion house best known for its trench coats, outerwear, and heritage branding. Burberry has been undergoing a multi-year brand repositioning aimed at sharpening its luxury credentials and improving its product mix. While the transition weighed on performance during the broader luxury slowdown, a stabilization in China and emerging markets could provide a meaningful tailwind.

Burberry has historically generated a significant share of revenues from Asia-Pacific, making it highly sensitive to any rebound in Chinese consumer traffic and discretionary spending.

The stock currently carries a Zacks Rank #3 (Hold) rating. In fiscal 2027 (ending March 2027), the stock is expected to report earnings growth of 67.9% on revenue growth of 3.9%.

Burberry Group PLC Price and Consensus
 

Image Source: Zacks Investment Research | Burberry Group PLC Quote

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