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Bouncing Back Global luxury demand is set to rebound this year, but spoils might not be equally shared Show more Source, Bain, Altagamma, HSBC Note: 2016 and 2017 are HSBC estimates. That's not to say there isn't distress in Europe: Burberry's sales have been boosted by the pound's drop but that hasn't helped reinvigorate its brand. Swiss watch groups Cie Financiere Richemont SA and The Swatch Group AG are also suffering from weak demand. But, even at Europe's weakest brands, there are signs the worst might be over. For one, the laggards are catching up. Prada SpA, knocked hard by the slowdown in China, said sales rose in January for the first time in more than a year. Germany's Hugo Boss AG, which last year parted company with its chief executive after a bad profit warning, now expects 2016 operating income to be at the upper end of expectations. A revamped Gucci, meanwhile, has turbocharged Kering SA , whose stable also includes Bottega Veneta and Christopher Kane, whileEuropean power brands LVMH Moet Hennessy Louis Vuitton SE and Hermes International are motoring along quite nicely. Some factors on the horizon could even things out a little. Tax cuts for the wealthy from President Trump may boost U.S.
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