The news: Demand for luxury goods is resilient despite disruption in the Middle East and global economic uncertainty.

By the numbers: Solid Q2 results from LVMH, Kering, Hermès, and Richemont—along with smaller luxury companies like Zegna, Mulberry, and Burberry—show that consumers continue to buy prestige brands, even as their attention shifts to investment pieces like jewelry and handbags over beauty and ready-to-wear.

• Kering’s comparable revenues rose 2% YoY in Q2, helped by a better-than-expected quarter for Gucci.
• Hermès’ sales rose 6.7% YoY, led by double-digit growth in its silk and leather goods businesses.
• Ermenegildo Zegna’s revenues jumped 10.3% YoY in Q2, with acceleration across all three of its brands (Zegna, Tom Ford, and Thom Browne) as its direct-to-consumer strategy bears fruit.
• Mulberry’s sales were up 23% YoY in the 13 weeks ended June 27, while Burberry’s sales rose 5% in the same period—pointing to rising demand for luxury rooted in British heritage and storytelling.

Zoom out: Creative overhauls are successfully recapturing consumers’ interest, particularly in key markets like North America.

• Gucci’s North America sales were up 7% YoY in the first half of 2026, helping offset declines in other geographies, although management noted that trends improved across all regions in Q2.
• Dior returned to “positive territory” in Q2, with growth among “all key clients” in H1 2026 thanks to widespread interest in designer Jonathan Anderson’s latest collections, LVMH CFO Cécile Cabanis said.

However, luxury consumers aren’t shopping indiscriminately. Demand for hard luxury goods like watches and jewelry is outpacing more fashion-forward categories like apparel and accessories.

• Sales at Cartier and Van Cleef & Arpels owner Richemont rose 20% at constant exchange rates in its fiscal Q1, nearly double analyst expectations, as strong demand for jewelry and watches drove double-digit gains in almost all geographies.
• LVMH’s watches and jewelry segment was a standout performer in Q2, with organic sales rising 11% YoY as shoppers flocked to Tiffany & Co. and Bulgari.
• Kering Jewelry, which comprises brands like Boucheron and Pomellato, grew sales 18% on a comparable basis.

Implications for the luxury market: Demand for luxury goods is strengthening, particularly in the US. We expect US personal luxury sales to rise 3.3% this year, up from 1.2% last year, and to continue accelerating into 2028.

However, as luxury buyers become more selective—and more inclined to concentrate their spending on one big purchase, like a Cartier watch—brands will have to work harder to earn their dollars. Potential actions include offering more affordable, entry-level products that appeal to Gen Z and other aspirational shoppers or going deeper into high-growth hard luxury categories like jewelry to meet rising demand.