1507 GMT - The luxury sector should see a divergence in company performance in the first half of the year, but overall the industry will see a slowdown in growth, HSBC Global Research analysts write in a note to clients. President Trump's announcement of tariffs hurt luxury demand, before what is expected to have been a better performance in May and June, the analysts say. Furthermore, growth in Japan--which had been boosted a year ago by the weak Japanese yen--will have likely reversed visibly for most luxury groups, they add. On a positive note, spending by Chinese consumers, who once drove the sector's growth but are now saving rather than spending money on luxuries, could start to rebound later in the year, the analysts say. (andrea.figueras@wsj.com)

(END) Dow Jones Newswires

July 02, 2025 11:08 ET (15:08 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.