Europe's luxury sector is showing signs of revival — but China weakness and tariff threats loom

Europe’s troubled luxury sector is showing signs of revival following an upbeat earnings season, with Hermes, LVMH, and Kering exceeding quarterly forecasts. However, continued weakness in China and the threat of U.S. tariffs could impact even the most exclusive brands. Experts predict a cyclical recovery driven by U.S. and European consumers, with a normalization expected by 2025.

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