Burberry and luxury goods shares climb as JPMorgan backs Korea as key new market
Published: 09:01 27 May 2026 EDT
Shares in fashion and luxury brands were among the top risers in Europe on Wednesday after JPMorgan said booming wealth creation and tourism spending in South Korea could provide a major growth tailwind for the sector.
The bank said South Korea was emerging as one of the brightest spots for luxury goods companies, helped by rising consumer confidence, surging semiconductor-linked wealth and growing tourist demand.
JPMorgan analyst Chiara Battistini said the country’s exposure for luxury groups was now larger on average than the Middle East and argued the market could become “a tide that lifts most boats” across the sector.
The broker highlighted luxury watches, premium cars and high-end ready-to-wear fashion as likely beneficiaries, alongside brands with strong momentum such as Moncler and Richemont’s jewellery labels.
Among London-listed names, Burberry Group PLC (LSE:BRBY) rose 3.7% and JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) climbed 5.3%, making them among the strongest performers on the FTSE 100.
Elsewhere in Europe, Moncler advanced 5.5%, Richemont gained 4.6%, Puma rose 6.2% and Adidas added 7%. Puig Brands climbed 5.2% as investors rotated back into consumer and luxury stocks.
JPMorgan said South Korean demand was being driven partly by the artificial intelligence-led semiconductor boom, which has fuelled rising stock markets and large employee bonus payouts, alongside increased tourist spending supported by favourable price differences and the growing global influence of Korean culture.
The bank added that stronger Korean demand could help offset weaker trends in other luxury markets.
"We see some male categories (luxury watches, cars, high-end RTW) and strong brand momentum stories (Richemont jewellery brands, Moncler brands) as likely to benefit the most, versus a smaller impact for some of the turnarounds, that might not be as top of mind as other brands, while going through brand-specific resets."
