Luxury Investors Eye Tough Earnings Season After Stock Selloff

If stock prices are any indication, investors are bracing for a rough earnings season for luxury-goods makers.

A Goldman Sachs Group Inc. basket of luxury stocks has slumped 8.1% this year on flaring geopolitical tensions and questions over Chinese consumer demand, trimming much of its gains from the past two quarters. It’s an unwelcome turn, given that analysts have projected a return to growth in 2026 following two years of stagnation.