0744 GMT - Luxury companies continue to contend with a number of difficulties, but that doesn't imply that the business model is broken, but rather that the sector faces lower growth, Deutsche Bank analysts say. There is still consumer appetite for luxury, they write in a research note. However, luxury brands have increased prices in the past years without the associated product innovation, DB says. "We are still in the early days of the sector recovery in our view and any evidence of an improvement in China will see a further leg up," the analysts say. They add that an improvement driven by better results in China could start in 2026. DB upgrades both LVMH and Burberry to buy from hold to sit alongside its existing buy recommendations for Hermes, Pandora and Ermenegildo Zegna. (andrea.figueras@wsj.com)

(END) Dow Jones Newswires

October 09, 2025 03:45 ET (07:45 GMT)

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