Moncler SpA

Europe's biggest luxury firms are turning more positive on the crucial Chinese market as a fragile spending recovery takes shape. Chinese household consumption is stabilizing and even rebounding in some categories like high-end cosmetics, according to Bloomberg Intelligence analysts. Earnings estimates point to a pickup in performance, with Gucci-owner Kering expected to return to sales growth in the region including China by the fourth quarter, while Burberry reported a 9% jump in retail sales in Greater China in the most recent quarter. LVMH said China appears to be stabilizing after several quarters of deterioration, and smaller players like Moncler are also well positioned. The spending boost is primarily driven by high-net-worth consumers, with the key debate centering on whether improving sentiment can broaden beyond affluent shoppers.