Berenberg Says Luxury Supercycle Is Over as It Downgrades LVMH

The luxury sector’s three-decade boom is over, according to Berenberg analysts whose downgrade of LVMH coincided with the stock’s biggest surge since 2001.

“Luxury is at an inflexion point,” the team led by Nick Anderson wrote in a note on Wednesday, cutting LVMH to hold from buy and Gucci-owner Kering SA to sell from hold. “We believe that the industry faces a structural demand problem, and that after three decades the luxury supercycle is over.”