Investors reacted well to new creatives making their debuts, and several luxury brands, and stocks in the sector rose on the stock market in a gray session. Kering’s shares rose to their highest level in nearly 15 months after Morgan Stanley listed them as a top pick among European luxury stocks, while UBS is rewarding Richemont and Cucinelli.

New creatives in brands (and beyond)

New creatives have brought a breath of optimism, we said, but the new brands’ focus on more affordable products also contributed to the sprint of luxury stocks on the stock market. On Tuesday, Oct. 7, growth in major luxury stocks lifted the sector’s European index to its highest level since late May 2025, Reuters writes. Charles Louis Scotti, an analyst at Kepler Cheuvreux, told the agency that the creativity crisis is over, and the pricing strategy of some brands is more affordable. “All these factors indicate a gradual recovery in organic sales growth, which will show that the worst is behind us”, the analyst concluded.

An explosion of creativity

Morgan Stanley is also betting “on an explosion of creativity” and has revised upward its recommendations for Kering and LVMH. Indeed, the analysts listed Kering itself as the top buy choice among European luxury stocks, pushing the stock to its highest value in 15 months (source: Bloomberg). For the US investment bank, fashion is moving away from “understated, minimalist looks toward more color and a maximalist aesthetic”. This could penalize companies such as Hermès and Prada. And while the worst may be behind us, Morgan Stanley points out the current risks in luxury: stagnant demand among middle-income consumers and the strong euro.

+4% in 2026 (but unclear for leather)

“We forecast +4% organic luxury sales growth for 2026: better than 2025, but worse than the consensus of about +6%. One of the reasons is that the price effect will be smaller, as brands are trying to introduce more affordable prices”, UBS analyst Zuzanna Pusz tells Fashion Magazine. With regards to leather products, she adds: “It has been an excellent category and historically very resilient. But this time it might be different because it has grown a lot and is a bit more saturated than in the past”. According to Pusz, “Maybe people have enough handbags and are now looking for new categories”. That is why he believes jewelry will attract more customers than handbags: “They are a better investment”. Her first choice falls on Richemont stock. The same analyst believes the stock analysis on Cucinelli prepared by Morpheus is wrong, and therefore doesn’t detect any alarming data.