Published on 29 Aug 2023 on Insider Monkey via Yahoo Finance
11 Best Global Luxury Stocks to Buy
In this article, we will take a look at the 11 best global luxury stocks to buy now. If you want to skip our discussion on the luxury goods industry, go to the 5 Best Global Luxury Stocks to Buy.
According to JPMorgan, even though the US consumer is reducing expenditure on non-essential items, the demand for luxury goods remains robust. The research by the New York-based diversified financial services firm revealed that the luxury goods industry grew by 7% year-over-year (YoY) during Q4 2022, underscoring the industry's ability to withstand challenges. Consumers have been showing an inclination toward luxury goods by drawing upon their accumulated savings from the COVID-19 pandemic period. JPMorgan’s findings suggest that excess savings in the US peaked at around $2.1 trillion in Q2 2021 and fell to around $800 billion by Q2 2022. These savings are projected to be entirely depleted by the third quarter of 2023.
Chinese consumers, similar to their American counterparts, accumulated substantial savings due to the pandemic. JPMorgan estimates that the average savings rate in China rose from 29.9% in 2019 to 33.5% in 2022. The first two months of 2023 witnessed a notable rise in retail sales in China, registering a 17% YoY increase and attaining a four-year peak. Notably, industries such as gold and jewelry, cosmetics, and apparel were the primary drivers behind this retail boom. The Head of European Luxury and Sporting Goods at JPMorgan, Chiara Battistini, believes that if the pent-up demand for luxury goods is addressed completely, it could result in a YoY sales growth of 35% to 40% in the Chinese market. The expanding industry has led to a rising interest amongst investors in luxury brand stocks and luxury stocks ETFs like the Amundi S&P Global Luxury (GLUX.DE), which tracks the performance of the S&P Global Luxury Index. You can also read about the Top 10 Luxury Clothing Stocks to Buy here.