Published by Global Banking & Finance Review®
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleEuropean luxury shares rose as new fashion debuts at Milan Fashion Week sparked hopes for a sales comeback, with Kering, Dior, and LVMH leading the surge.
By Mateusz Rabiega
(Reuters) -Shares of European luxury players rose on Tuesday, pushing the European luxuries index to its highest level since late May this year, as designing debuts among fashion houses and a push for affordability gave investors hope that the sector was set for a gradual comeback.
The rally was led by the big French names, with Kering, Christian Dior and LVMH rising between 3% and 7% as of 1220 GMT, while most of the remaining index constituents gained 1% to 3%.
Luxury groups in Europe have been seeking to turn around their fortunes that had soured as U.S. tariffs and slower demand in China put a dent in their profits.
New designers at houses of Gucci, Bottega Veneta and Dior presented their collections at last week's Milan Fashion week.
"Investors are very pleased with the new collections that have been presented during the Fashion Weeks because one of the reasons for the sector turmoil since early 2024 has been, amongst other things, creativity crises," Kepler Cheuvreux analyst Charles Louis Scotti told Reuters.
Equity analysts from Morgan Stanley also bet on the "burst of creativity", having upgraded their recommendations for Kering and LVMH in a note to investors.
Some luxury brands are also reworking their pricing structures, with more affordable products to be pushed onto store shelves, Scotti added.
"All those factors point to a gradual organic sales growth recovery, which will confirm the worst is behind us," he said.
(Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak)
The European luxuries index is a financial benchmark that tracks the performance of luxury goods companies in Europe, reflecting their stock price movements and market trends.
Equity analysts are financial professionals who evaluate and analyze stocks and shares to provide investment recommendations based on market trends and company performance.
A fashion week is a series of events held in major cities where designers showcase their latest collections to buyers, media, and the public, influencing trends in the fashion industry.
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