Luxury Stocks Face Most Bearish Sentiment in Years, UBS Says

Investors have adopted the most pessimistic outlook on European luxury stocks in years as the war in the Middle East threatens to delay a long-expected rebound in demand, according to UBS analysts.

Signs of stabilization in the final quarter of 2025 and opening weeks of this year have given way to fears that geopolitical shocks will weigh on earnings, analysts including Zuzanna Pusz wrote in a note Monday. Companies fret that higher energy prices and reduced consumer confidence could hit demand, the analysts said.