HSBC has downgraded LVMH and Burberry to Hold from Buy, citing softer mainland China sentiment, slowing sales in South Korea and North America, and a tougher comparison base. Analysts led by Anne-Laure Bismuth wrote that H2 2026 “won’t get any rosier and could prove more difficult to navigate,” also flagging social media backlash over LVMH’s trademark dispute with Chinese tea brand Molly Tea. LVMH fell 2.59% in Paris as its target was cut to 490 euros ($569) from 600 euros ($697). HSBC kept Buy ratings on Richemont, Kering, Moncler, and Prada. Sector organic growth hit 7.0% in Q2, but Goldman Sachs’ luxury basket is down 13% year-to-date.

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