Luxury Goods Macro Tracker

Goldman Sachs remains cautiously optimistic on the luxury sector, noting mixed signals in China where high imports are offset by weak retail sales. The sector is trading at historical valuation averages, with a preference for stocks with US exposure or high-end clusters like Zegna and Watches of Switzerland.

Key Takeaways

• 1.Macro data for China in April was mixed, with strong luxury imports contrasting with weak retail sales.
• 2.The sector valuation is currently trading at 23x 12mf P/E, which is aligned with its 10-year historical average.
• 3.Expectations remain for modest sequential improvement in China and solid performance in the US high-end consumer cluster.

Table of Contents

• Macro Tracker: April datapoints for China mixed but continue to expect modest sequential improvement
• Where to from here?
• Key Data in a Page
• Sector Valuation
• Disclosure Appendix

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