Bernstein Highlights Strongest Luxury Plays Amid China Recovery

Bernstein’s on-the-ground mall traffic survey across Beijing, Shanghai, Hong Kong and Chengdu indicates China’s luxury recovery is uneven but beginning to create a clear hierarchy among luxury names. LVMH remains the benchmark thanks to dominant Louis Vuitton and Dior footfall, diversification and pricing power, and is viewed as a safer long-term compounder after sector multiples fell from prior peaks. Richemont is highlighted as the momentum leader — driven by Cartier and Van Cleef & Arpels — benefiting from stronger jewelry demand in China. Burberry shows a recovering turnaround with traffic above its 2025 average, while Brunello Cucinelli stands out for ultra-premium resilience despite premium valuation. Market impact: investors are likely to favor selective luxury exposure (top-brand ecosystems and jewelry players) rather than broad, cyclical luxury bets.