OPTIMISM is building that a second-half (2H25) rally in Europe’s luxury-goods sector can extend into the new year as signs point to better times for the continent’s flagship equity sector.

Upbeat third-quarter (3Q25) earnings, a recovering Chinese market and a wave of newly installed creative directors have all spurred confidence that the post-pandemic hangover could soon be over, leading a slew of analysts to turn more positive in recent weeks.