The global Luxury goods market is expected to reach $296.9 billion by 2026, registering a 4.8% CAGR. A rapid rollout of COVID-19 vaccines worldwide and substantial fiscal stimulus, along with renewed consumer confidence, should accelerate domestic spending on luxury goods. Furthermore, increasing spending on premium luxury brands by high-net-worth individuals, fostered by the growing influence of social media platforms, should spur the industry’s growth.
Given current industry dynamics, we think international luxury goods stocks Hermès International Société en commandite par actions (HESAY), Burberry Group plc (BURBY), and Hugo Boss AG (BOSSY) are well-positioned to benefit. So, these stocks could be wise bets now.