Best performing luxury stocks in 2024
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The luxury and fashion sector experienced a turbulent year in 2024, with share price performance across 18 publicly listed companies showcasing a stark contrast between winners and losers. While some brands achieved remarkable gains, the majority of the sector struggled under macroeconomic pressures, with significant losses dragging down overall market sentiment.
Topping the leaderboard was Tapestry, whose shares soared by an impressive 71%. The stock's performance was buoyed by speculation surrounding a potential merger with Capri Holdings, which, although unmaterialized, captured market attention. The strong performance of its flagship brand, Coach, further solidified Tapestry's dominant position.
Not far behind, Ralph Lauren, Prada, and Ferrari delivered robust returns of 58%, 37%, and 34%, respectively. These results were underpinned by resilient consumer demand and strategic initiatives that resonated with their high-value clientele.
Conversely, Capri Holdings Limited emerged as the sector's worst performer, with its share price plummeting by 58%. The company faced significant challenges, including underwhelming efforts to divest key brands such as Versace and Jimmy Choo. Other notable laggards included Ferragamo (-44%) and Kering (-39%), contributing to a broader decline in luxury stock valuations.
Overall, 2024 was a challenging year for the industry, with 11 out of 18 companies recording negative returns. Billions of euros in market capitalization were wiped out, reflecting a broader trend of cautious consumer spending and global economic uncertainties. Despite initial projections of modest growth (0–5%), the sector fell short of expectations.
Data was analyzed and published on social media by Danny Younis, Executive Director at Automic Group, he anticipates further headwinds in 2025, predicting a potential decline of 1–2% across the luxury sector.