Luxury Goods Industry Pulse: Q3 2026
Luxury Sector Begins to Look Attractive Again, Despite a Skeptical Market
Luxury sales growth has accelerated to its highest level since 2023, and improving profitability signals the sector's recovery may finally be taking hold. The US has emerged as the primary engine of growth, supported by resilient equity markets and strong domestic demand, while Europe's recovery is more dependent on the slowing return of international tourism.
Despite these improving fundamentals, markets remain skeptical about the durability of the rebound, pushing luxury valuations back into undervalued territory after a brief approach to fair value. About half of the stocks under Morningstar coverage are trading below fair value.
These conditions suggest meaningful long-term opportunity for investors willing to look past short-term uncertainty. Understanding which companies and regions are positioned to benefit first is essential to acting on this inflection point. Download the full report today.
