At around 08:50 GMT, the European luxury goods index was down 0.48%, compared with a 0.05% decline for the pan-European Stoxx 600.
Richemont (-1.24%), owner of the Cartier brand, is expected to set the tone for the sector with the release of its third-quarter results next week, according to RBC, which notes that investors will focus on exit rates, pending transactions and comments on margin forecasts for the first half of 2025.
Overall, RBC is more positive on the sector's outlook for 2025, citing more realistic earnings forecasts and favorable investor positioning, with an improvement in the US and a likely bottom in China.
For RBC, LVMH (-0.02%) and Richemont offer better protection in the event of a market downturn, while Burberry (-1.45%) has the potential to improve.
The intermediary expects more difficult results for Swatch (-2.86%), with its recommendation changed from "perform in line with sector" to "underperform".
On Kering (-1.63%), RBC believes that the Gucci parent company's 2025 forecasts could disappoint.
In the sporting goods sector, RBC expects momentum to remain strong at Adidas (+008%) and to accelerate at Puma (-0.23%).
(Redigé par Claude Chendjou, avec la contribution d'Anna Pruchnicka, édité par Kate Entringer)