12/01/2025 18:19:35

In addition, it indicates that it offers good levels of profitability, "supported by solid entry barriers, good price points and strong brand value in the face of new challenges."

During the pandemic, the luxury sector experienced its worst slump in two decades, but by the end of 2021, the industry's sales received a strong boost and recovered to their previous levels, demonstrating its "staying power".

At present, from the rating agency they believe that there are several factors that "could shape the operating prospects of the sector, including the generational change, the reopening of China, the unlocking of new regions for growth, the impact of the second-hand luxury and the continued consolidation of the industry," according to Manuel Vela Monserrate, a credit analyst at S&P Global Ratings.

"This could hinder or improve the credit quality of issuers, depending on how they are managed and the quality of management execution," adds Vela.

However, some important industry trends have accelerated in recent years, including increased direct retail channel penetration, strong momentum in the US market (currently the largest region for personal luxury goods sales), and of the big global brands compared to their smaller competitors.

At the same time, the luxury personal goods industry is based on discretionary spending with a focus on high price points.

"For these reasons, in times of economic slowdown, we expect growth to moderate. All in all, we believe that the sector will adapt and its resilience will continue," concludes Vela.