In a study published on January 26, Barclays takes an optimistic view of the luxury goods sector. The British bank predicts a boost for European companies thanks to China’s supportive policies and improving economic data in Europe.
In its latest study, Barclays has issued an optimistic outlook for the luxury goods sector. The brokerage firm expects European companies to be boosted by China’s supportive policies and improving economic data in Europe.
Barclays has upgraded its rating on the luxury goods sector to “Overweight”, highlighting the expected positive impact of China’s support policies. Despite a challenging 2023, investor confidence has been bolstered by Beijing’s recent measures, including a significant reduction in bank reserves.
“While we do not expect a large-scale stimulus package, we believe that selective exposure to China via European companies offers a positive asymmetry should activity show more signs of stabilization and greater policy support is put in place,” explain the bank’s analysts.
After a post-pandemic surge that led to robust sales growth for high-end fashion companies for two years, a transition is taking place. Consumers, particularly younger and less affluent customers, are scaling back their purchases, a vulnerability accentuated by rising inflation.
Economic recovery in Europe and support for luxury goods
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