The recent rally in the shares of luxury goods makers will be put to the test this earnings season, as valuations are already back at demanding levels.
After a rocky first half of the year, a gauge tracking the sector has jumped 14% over the past two months in a relief rally as damage from the Trump administration’s tariffs prove less severe than feared for exporters. That’s cranking up the pressure on companies to deliver market-pleasing results, even as they battle challenges like China’s uneven economic recovery and the stronger euro.
Earnings and sales growth for luxury companies has been ...
