Last week’s rally in luxury-goods stocks driven by China is built on shaky grounds, according to Goldman Sachs analysts. They argue that recent stimulus measures are unlikely to boost high-end discretionary spending in the near term, leading Goldman to downgrade Kering to sell. The firm expects a challenging six months ahead for the luxury sector, with consumer confidence and spending remaining low, particularly in China. HSBC echoed this sentiment, warning that recovery in Chinese luxury consumption will be slow. Despite some gains, European luxury stocks remain down 16% since March, with Kering's shares having fallen 37% this year.