{"id":297471,"date":"2026-02-18T14:25:08","date_gmt":"2026-02-18T14:25:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/297471\/"},"modified":"2026-02-18T14:25:08","modified_gmt":"2026-02-18T14:25:08","slug":"burberry-is-top-turnaround-prospect-in-depressed-luxury-sector-says-broker","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/297471\/","title":{"rendered":"Burberry is top turnaround prospect in depressed luxury sector, says broker"},"content":{"rendered":"

\"Burberry Burberry is top turnaround prospect in depressed luxury sector, says broker Proactive uses images sourced from Shutterstock <\/p>\n

Soft investor sentiment towards luxury stocks is weighing on names such as Burberry Group PLC<\/a>\u00a0and Watches of Switzerland Group PLC<\/a>, with RBC Capital Markets warning that a lack of earnings momentum is translating into weak market interest.<\/p>\n

In its latest look at luxury datawatch, analysts at the bank said feedback from US investor meetings pointed to \u201csome of the weakest\u201d sentiment since 2014-2016.<\/p>\n

Reporting so far in the 2026 financial year has failed to confirm a sustained recovery in Chinese demand or deliver meaningful earnings upgrades, which RBC argues are needed for the sector to perform this year.<\/p>\n

The broker said its momentum scorecard for February was \u201cfairly uninspiring\u201d, with earnings trends flat or negative across most of its coverage.<\/p>\n

Valuations remain mixed, offering \u201cinsufficient offset\u201d for slowing growth, while inbound investor enquiries have declined compared with last year.<\/p>\n

RBC added that longer-term concerns are also emerging, including the potential impact of artificial intelligence on white-collar employment and middle-class spending power.<\/p>\n

Within the sector, RBC sees selective opportunities.<\/p>\n

Overall, Watches of Switzerland stands out as one of the few names with positive earnings momentum, while Burberry is the bank’s\u00a0preferred turnaround prospect in the space, with the potential to deliver earnings upgrades in the second half.<\/p>\n

Across the Channel, analysts see\u00a0Louis Vuitton Moet Hennessy<\/a>\u00a0as becoming more attractive on a 12-month view, Herm\u00e8s is felt to offer “revenue growth defensiveness” and\u00a0EssilorLuxottica is “somewhat macro agnostic, with stock specific drivers and product innovation led revenue growth”.<\/p>\n

In sporting goods, RBC continues to favour Nike Inc<\/a>,\u00a0believing it is “taking the right steps”, with improvement in running footwear and a refreshed organisational structure. “We anticipate revenue recovery shape from calendar 2026 and supported by World Cup driving narrowing of relative performance gap vs peers, although we acknowledge the recovery pathway won\u2019t be linear,” the analysts said.<\/p>\n","protected":false},"excerpt":{"rendered":"Burberry is top turnaround prospect in depressed luxury sector, says broker Proactive uses images sourced from Shutterstock Soft…\n","protected":false},"author":2,"featured_media":297472,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[150618,142476,146,85,36562,46,150619,17582,38862,150620],"class_list":{"0":"post-297471","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-entertainment","8":"tag-burberry","9":"tag-earnings-momentum","10":"tag-entertainment","11":"tag-il","12":"tag-investor-sentiment","13":"tag-israel","14":"tag-rbc-capital-markets","15":"tag-revenue-growth","16":"tag-turnaround","17":"tag-watches-of-switzerland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/297471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=297471"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/297471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/297472"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=297471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=297471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=297471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}