Luxury Stocks’ Recent Rally Faces High-Stakes Earnings Test
- Basket of luxury stocks has beaten market since mid-November
- Richemont reports sales on Thursday, LVMH set for Jan. 28
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Europe’s beaten-down luxury stocks have turned a corner the past two months, increasing the stakes for the earnings the companies are about to announce.
Speculation that China’s economic stimulus will lead to higher spending, and that Donald Trump will manage to boost US growth, has lifted a Goldman Sachs Group Inc. basket tracking the sector by 12% since mid-November, outpacing the broader market. Now investors need proof that the optimism was justified.