Luxury goods aren’t necessities, they’re products people buy because they want them. That distinction matters for investors. The best luxury companies don’t compete on price. They compete on brand, exclusivity, and pricing power.
For investors, that often translates into high margins, loyal customers, and durable demand from affluent consumers.
Here are some of the top luxury stocks to consider now, followed by what to know before investing.
Top luxury stocks to consider
The chart below shows five of the top luxury stocks you can buy this year.
The five stocks have outperformed the S&P 500 (INDEX:^GSPC) over their histories and generally benefit from a bull market, an expanding global economy, and increasing wealth among upper-class consumers who profited in the pandemic stock market boom. Because these companies count on wealthy customers, their performance is highly correlated with macroeconomic indicators such as the stock market or real estate prices.
1. RH (Restoration Hardware)
NYSE: RH
Key Data Points
RH (RH - NYSE:RH), the company formerly known as Restoration Hardware, has mastered the market for expensive home goods. The company sells items that include $5,000 dining tables and $8,000 leather couches based on a modern and contemporary design motif. RH uses mailed source books and thick catalogs to stimulate demand, and it sells its wares from a handful of splashy galleries across North America and Europe. Under the leadership of CEO Gary Friedman, the company successfully pivoted to a membership model, selling annual memberships at $200 in exchange for 25% discounts on merchandise. The policy has encouraged repeat purchases and customer loyalty.
Its next step is transitioning to a lifestyle brand as the company has started opening up hotels, restaurants, and private jets, and launched a media platform based around architecture and design.
Growth has slowed with the housing market, but profitability could rebound if housing activity improves. Management has also reduced sourcing exposure to China amid tariffs.
2. LVMH Moet Hennessy Louis Vuitton
OTC: LVMHF
Key Data Points
LVMH (LVMHF -0.98%) is the world's biggest luxury company, valued at roughly $264 billion. The company has diversified holdings in wine and spirits, luxury fashion and leather goods, perfumes and cosmetics, and jewelry and watches, among other businesses.
It's been a prolific acquirer of luxury brands, adding Officine Universelle Buly, a French perfume and cosmetics company, in October 2021 and Tiffany in January 2021.
China has been a key growth driver, though recent softness in that market has weighed on results. Through the first three quarters of 2025, revenue fell 4% to 58.1 billion euros, though organic sales rose 1% in the third quarter, a positive sign for the business.
Still, LVMH’s portfolio of iconic brands and acquisition strategy give it resilience.
3. Ferrari
NYSE: RACE
Key Data Points
Ferrari (RACE -1.84%), the high-end sports car maker, employs a classic luxury selling technique. The company limits its production to support high prices and wide operating margins.
Ferrari's management has argued that the company should be valued more like a luxury company than an automaker, and it earns a higher multiple than its auto sector peers. Like LVMH, the company has found a ripe market in China, and it's burnished its profits by selling limited-edition cars at prices topping $1 million.
Performance remained strong through the first three quarters of 2025, with revenue rising 8% to 5.3 billion euros, and it reported a 29.9% operating margin.
4. Hermes International
OTC: HESAY
Key Data Points
5. Moncler
Moncler (OTC:MONR.F) is best known for its high-end outerwear, including down jackets and puffer coats. Its jackets retail from $1,000 to $2,000, and use premium materials, including goose down sourced from European farms.
The company also owns Stone Island, an Italian luxury brand that specializes in menswear, including sweaters, jackets, and outerwear. Stone Island contributes about 15% of its total revenue.
Moncler's first-half 2025 results were modest, with revenue up 1% to $1.2 billion euros, and its operating margin fell from 21% to 18.3% due in part to a shift in its marketing. Its performance in the third quarter was similar with flat revenue. Roughly half of Moncler's revenue comes from Asia, and it primarily relies on company-owned stores and e-commerce to sell its goods.
How to evaluate luxury brand stocks
Luxury companies are distinct from most companies in several ways, especially in the relationship between desirability and price, so there are some important differences to be aware of.
Because rapid growth can dilute a brand -- especially if that growth comes from a mid-market customer base -- high revenue growth is rare for a luxury company. It is not the most important factor for investors.
Instead, investors should consider the strength of its brands, which can often be measured by a company's pricing power or how expensive its items are compared to competitors' prices. Operating margin is the most important metric because it shows how successful the business is at converting revenue into profit. Investors should expect luxury companies to generate high operating margins; 20% or more is ideal here.
Benefits and risks of investing in luxury stocks
Investing in luxury stocks comes with its own set of benefits and challenges. Let's see how they stack up.
Benefits:
- Luxury stocks tend to represent timeless brands that have withstood competition and disruption and are likely to continue to do so.
- Luxury stocks generate wide operating margins and significant free cash flow, which can fund dividends, share buybacks, and acquisitions.
- Because of their well-known brands and luxury status, luxury stocks tend to have sustainable competitive advantages.
Risks:
- Luxury stocks are often dependent on a strong economy, at least for the upper class. A stock market crash, or a similar event, is likely to hit luxury stocks hard.
- The sector tends to be slow-growth since these companies are focused on protecting their luxury status and not diluting the brand.
- The sector has a lot of exposure to China, which has been an unpredictable market in recent years.
Should you invest in publicly traded luxury companies?
Many of the world's most powerful brands are luxury companies, and such brand power brings significant competitive advantages and big profit margins. Luxury stocks have a place in almost any portfolio.
Luxury stocks also have a history of outperforming the broader market. Since the sector comprises companies that have proven themselves, they are relatively low-risk investments. Although cyclical, several trends favor luxury stocks over the longer term.
The drivers of luxury demand, such as the desirability of exclusivity and status, are also timeless, meaning this sector should continue to beat the market over the long term.
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FAQ: Luxury stocks
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