Week after week, the figures paint a clear picture: a recovery is underway for the European economy and for the luxury sector in particular.
First, on the financial markets, investor confidence is rising. This performance comes against a backdrop of renewed optimism regarding trade negotiations between the European Union and the United States.
While the EU is still awaiting a final decision, the European objective is now clear: to maintain customs duties at a reduced level of 10% for products exported to the United States, compared with the 20% initially announced in April. Specific exemption requests have been made for sectors including aerospace, cosmetics, and alcoholic beverages.
UBS predicts that a 10% rise in US stock markets by the end of 2026 could lead to a 0.6% to 1.2% increase in spending in the luxury sector — an encouraging prospect for an industry that has not been spared the turbulence of recent months.
But that’s not all. UBS highlights encouraging prospects for the entire luxury industry between now and 2026. After two years of transition, major groups are finally expected to return to a solid growth trajectory, driven in particular by technological investments, expansion into new markets, and the strengthening of ties with local customers in major capital cities. This would be the case, for example, for Burberry and Richemont, both of which have been rated “buy” by the Bank for the next earnings season.
For its part, the latest report by the European Creative Industries Alliance (ECCIA), produced in collaboration with the Colbert Committee and Bain & Company, confirms the strategic importance of the luxury sector at the European level. Now accounting for 5% of European GDP (compared with 4% in 2018), our industry of excellence continues to grow. This resurgence is therefore part of a structural trend, confirming luxury as a strategic pillar of the continent’s economy, alongside technology, energy and financial services.
And this position is no accident. Heritage brands—whether in fashion, watchmaking, perfumery, or lifestyle—are stepping up their efforts to conquer new markets. Latin America, Southeast Asia, the Gulf, and East Africa are becoming investment priorities. At the same time, ultra-luxury is redefining itself: immersive experiences, cultural ecosystems, cross-sector collaborations… Brands no longer sell just objects or services, but worlds, stories and visions.
This dynamic can be seen in the recent moves and investments made by luxury houses. Audemars Piguet has just opened its first permanent address in Saint-Tropez. This opening is set to strengthen the Swiss watchmaker’s distribution network in the Mediterranean basin as it celebrates its 150th anniversary this year.
For its part, the group led by designer Giorgio Armani made record investments in 2024, despite a decline in sales and an even greater decline in EBITDA. The decline in results can also be explained by the record investments made in 2024 despite the context: they reached €332 million, double the level of 2023 and three times the average of previous years! The funds released enabled the company to internalize its e-commerce activities, renovate flagship stores (such as Madison Avenue in New York, Emporio Armani Milano, and Palazzo Armani in Paris), and finance the brand’s new headquarters in Paris, on Rue François 1er.
A positive trend is emerging—heritage brands are innovating, expanding, and conquering new markets or attempting to recapture historic ones.
Of course, not everything is linear. The geopolitical environment remains tense and macroeconomic balances fragile. But the signs are there, undeniable: luxury is moving forward, adapting, and gaining ground.
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Read also > The weekly: new international landscape, strategic repositioning, and immersive experiences – Luxus Plus
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