Luxury Goods Industry Pulse: Q4 2024  

While the industry enters a cyclical downturn, luxury valuations rebound at year-end.  

The luxury goods industry is constantly changing. Currently, we believe the sector is attractive overall while maintaining pockets of overvaluation and undervaluation. Our analysts don’t see the present cyclical weakening of demand to be long-lasting. With recent optimism over economic stimulus and real estate price stabilization in China, as well as growth in the US, investors’ perspectives have rebounded. Still, the downturn in sales has slowed inventory, which can lead to discounting challenges, particularly for brands without strong distribution control. 
 
Although consumption in Asia excluding Japan is particularly weak, sales in the Americas and Europe were up slightly in 2024. US travel to Europe remains solid after strengthening over a period of a few months—potentially supporting luxury purchases in the region. Growth in prime real estate prices globally has steadily increased based on expectations surrounding interest rate cuts. 
 
Download the report to explore the latest Q4 2024 trends shaping luxury sales across global markets.