- Basket of luxury fashion stocks are outperforming high-street brands so far in 2025 (+19% vs +11%), despite losing out to high-street fashion over the past year (+5% vs +20%)
- Luxury brands which struggled last year such as Burberry and Kering are bouncing back
- While most high-street brands are seeing modest gains, JD Sports, ASOS and Primark owner ABF are lagging behind
London, 19 February, 2025: With London Fashion Week starting on 20th February, new research from trading and investing platform eToro reveals that luxury fashion stocks are building towards a comeback this year after a challenging 2024.
eToro looked at the performance of ten of the largest UK and European luxury and high-street fashion retailers by market capitalisation to build two equal-weighted baskets of stocks – one for high-street stocks, one for luxury stocks.
The data shows that luxury stocks have risen 19% since the start of this year, overtaking high-street stocks which are up 11%, and generating nearly twice the returns of the Stoxx 600 or over three times the FTSE100 year-to-date. This comes after luxury fashion’s poor performance compared to high-street fashion over the past 12 months (+5% vs +20%), indicating that luxury is picking up the pace once again.
Table 1: Performance of of luxury and high-street baskets against Stoxx 600 and FTSE 100
| Luxury Basket | High-street Basket | Stoxx 600 | FTSE 100 | |
| YTD | 19% | 11% | 10% | 6% |
| 1Y | 5% | 20% | 13% | 14% |
| 3Y | 35% | 19% | 21% | 17% |
| 5Y | 101% | 11% | 29% | 18% |
Past performance is not an indication of future results.
All ten stocks in the luxury fashion basket are in the green year-to-date. Richemont, owner of Cartier, has seen the biggest increase at 33% after reporting strong Christmas sales. Stocks that have been on a rocky ride over the past year – such as Kering (-36%) and Burberry (-14%) – are showing signs of recovery as well, up 19% and 18% respectively since the start of the year.
Commenting on the data, Lale Akoner, Global Market Analyst at eToro said: “Luxury stocks have made a strong start to 2025, after dwindling consumer confidence in China put a huge damper on the global luxury market last year. Although we are less than three months into the year and it may be too early to tell whether luxury is truly back in style this year, there is some upside potential given the losses these stocks suffered last year.
“Despite luxury stocks’ dominance over a longer period – making nearly ten times the returns of high street stocks over the past five years – it is important to note that the likes of Kering and Hugo Boss were badly hit over the past 12 months. It will take some time for them to claw back their share price, especially as the Chinese economy is still facing challenges. There is also little difference between the year-to-date and one-year performances of Richemont, Hermès and Brunello Cuccinelli respectively, meaning there was limited growth throughout the past year apart from the recent boost driven by a strong holiday season.”
Within the high-street fashion basket, Zalando is leading the pack with a 23% year-to-date jump after beating earnings forecasts and announcing strategic acquisitions. Over the past year the German e-commerce giant’s share price has even surged an eye-watering 101%, far exceeding its peers. On the other hand, there are a few fast-fashion laggards, including ASOS (-16% YTD), JD Sports (-10%), and Primark owner ABF (-5%). These three stocks are also down over 1-year and 5-year periods.
Lale Akoner adds: “Over the past year, lower-cost high-street brands fared better in general as value-conscious consumers prioritised affordability amidst sticky inflation. Yet some of the most recognisable names to British shoppers within our basket – ASOS, JD and Primark – were not part of this growth. Instead, they were burdened by persistent inventory and profitability issues, highlighting the pressures facing fast fashion in a competitive, discount-driven environment.
“The fashion industry is inherently sensitive to changing consumer tastes. While the growing demand for sustainability is placing fast fashion practices under scrutiny, luxury brands are also grappling with the rise of ‘quiet luxury’, having to shift their focus to craftsmanship and understated elegance. A continued recovery in both sectors will depend on firms’ ability to understand the customer base and respond to shifting preferences.”
Table 2: Share price performance of big high street and luxury fashion brands
| Luxury basket: 10 big luxury fashion brands stock performance | High Street basket: 10 big high street fashion brands stock performance | |||||||
| YTD | 1Y | 5Y | YTD | 1Y | 5Y | |||
| 1 | LVMH | 10% | -15% | 69% | Inditex | 11% | 39% | 75% |
| 2 | Hermès | 21% | 26% | 296% | H&M | 1% | 2% | -26% |
| 3 | Richemont | 33% | 34% | 147% | Next | 7% | 19% | 47% |
| 4 | Kering | 19% | -36% | -52% | JD Sports | -10% | -25% | -50% |
| 5 | Christian Dior | 6% | -18% | 45% | Zalando | 23% | 101% | -18% |
| 6 | Moncler | 29% | 5% | 72% | LPP | 16% | 7% | 117% |
| 7 | Prada | 15% | 26% | 139% | Asos | -16% | -3% | -89% |
| 8 | Burberry | 18% | -14% | -42% | ABF | -5% | -15% | -26% |
| 9 | Brunello Cucinelli | 24% | 24% | 289% | SMCP | 4% | 35% | -52% |
| 10 | Hugo Boss | 3% | -27% | 5% | OVS | 9% | 67% | 114% |
Past performance is not an indication of future results.
**ENDS**
Notes to Editors
- eToro’s Fashion Week baskets were constructed with two equal weight indices of ten of the largest UK and European luxury and mass market fashion retailers by market capitalisation. Share price performance data rounded up to the nearest whole number.
- Data source: Refinitiv, taken on 18th February 2025
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