1、A P R I L 2 0 2 5Luxury:2025 Q1Luxury looks attractive after first-quarter selloff.Table of ContentsMorningstar Equity Researchhttp:/ DisclosureThe conduct of Morningstars analysts is governed by Code of Ethics/Code of Conduct Policy,Personal Security Trading Policy(or an equivalent of),and Investme

2、nt Research Policy.For information regarding conflicts of interest,please visit:http:/ Sokolova,CFASenior Equity Analyst,ConsumerI N D U S T R Y P U L S E I L U X U R YLuxury Cost Drivers:Cost Increases Accelerate Just as a Weak Top Line Weighs on MarginsTop Picks and Industry Coverage:Smaller Luxur

3、y Names Look Increasingly UndervaluedKey Takeaways:Luxury Enters Cyclical Downturn With Sales and Margins Pressured;Sector Looks Somewhat UndervaluedLuxury Current State:Luxury Demand Improves in the Fourth Quarter,and Valuations Start Looking AppealingLuxury Revenue Drivers:Demand in the West Remai

4、ns Weak While Chinese Consumption Recovery Falters359Morningstar Equity Research|3See Important Disclosures at the end of this report.Luxury Enters Cyclical Downturn With Sales and Margins Pressured;Sector Looks Somewhat UndervaluedLuxury Consumption Picks Up in Q4 2024 SequentiallyMargins Increasin

5、gly PressuredRecovery in Q4 Led by Europe and Americas as Asia Less NegativeShares Somewhat Attractive After a SelloffK E Y T A K E A W A Y SSource:Morningstar,company data,data as of Dec.30,2024.Morningstar Equity Research|4See Important Disclosures at the end of this report.Luxury Valuations Look

6、Appealing Again After First-Quarter Selloff Luxury share valuations have had a rocky path over the past few years.In 2022-23,valuations fluctuated between attractive and overpriced as markets digested the inflation impact on demand,the length of lockdowns and pace of recovery in China,and the repeat