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Luxury Market Boom: 3 High-End Retail Stocks to Buy for 2026
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Key Takeaways
Luxury boom is driven by pricing power, scarcity and affluent consumers who remain less price-sensitive.
Global tourism and rising wealth diversify demand, lifting premium goods and experiences worldwide.
TPR, SIG and HST reflect these trends across handbags, fine jewelry and high-end travel.
The global luxury market is entering a renewed phase of strength after navigating a period of cyclical softness. High-end retail stocks are once again attracting investor interest as spending by affluent consumers proves more durable than expected. A combination of resilient consumer demand, rising household wealth in key markets, continued appetite for premium goods and sustained brand desirability creates a supportive backdrop for luxury companies with global scale and strong execution.
As wealth creation accelerates across developed economies and select emerging markets, high-income consumers are regaining confidence in discretionary spending. Purchases of luxury handbags, fine jewelry and high-end travel experiences have remained resilient, reflecting both financial capacity and emotional attachment to iconic brands. This environment favors luxury companies that can pair pricing power with expanded global reach.
Understanding the Factors Driving the Luxury Boom
Two structural advantages are underpinning the luxury market’s momentum — pricing power and global appeal. Unlike mass-market retailers, luxury brands operate on scarcity, heritage and craftsmanship, allowing them to raise prices gradually without undermining customer demand, even in periods of economic uncertainty. Affluent consumers are typically less price-sensitive, especially for iconic handbags, fine jewelry and premium experiences that retain long-term value. Strong brand equity, limited supply and healthy resale reinforce customer loyalty, supporting consistent price increases and margin protection.
Global appeal adds another layer of strength. Luxury demand is geographically diversified, reducing the reliance on any single market. As international travel continues to normalize, tourist spending in major luxury hubs, such as Paris, Milan and New York, has accelerated. Meanwhile, rising disposable incomes in emerging markets continue to expand the pool of high-end consumers worldwide.
Together, pricing power and worldwide demand create a resilient growth model that helps luxury brands outperform broader retail and sustain momentum despite inflation and economic uncertainty. For investors, this combination supports a favorable outlook for well-positioned luxury stocks as the sector moves toward 2026 and beyond.
Our Picks
Investors seeking to benefit from the ongoing luxury upswing should focus on companies that pair powerful brand equity with disciplined expansion and a growing digital footprint, positioning them for sustainable growth in 2026 and beyond.
Below, we highlight three premium stocks, spanning fashion, jewelry and travel, which demonstrate how pricing power and global appeal can translate into meaningful upside in 2026.
Tapestry, Inc. (TPR - Free Report) : The company is firmly positioned within the global luxury retail market, anchored by its flagship brand Coach and supported by Kate Spade, providing broad exposure to premium handbags, accessories and lifestyle categories. Management cited a strong start to fiscal 2026, driven by accelerating demand, robust customer acquisition, particularly among Gen Z, and growth across North America, Europe and China.
Coach remains the key growth engine, benefiting from product innovation, disciplined promotions and rising average unit retail, highlighting improving pricing power. Tapestry’s direct-to-consumer and digital-first strategy enhances engagement and margin resilience. With accessible luxury positioning and global brand appeal, Tapestry is well-positioned to sustain growth into 2026.
The Zacks Consensus Estimate for TPR’s fiscal 2026 revenues and EPS indicates increases of 5.1% and 9.6%, respectively, from the year-ago period’s reported levels. The company delivered an earnings surprise of 11%, on average, in the trailing four quarters. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Signet Jewelers Limited (SIG - Free Report) : The company is a dominant force in the luxury jewelry market, anchored by leading brands such as Kay, Zales and Jared, with strong exposure to bridal and fashion jewelry. Management noted resilient demand from higher-income consumers, supported by steady same-store sales growth and continued strength in bridal categories.
Under its Grow Brand Love strategy, Signet is emphasizing brand-led assortments, disciplined promotions and pricing actions to offset higher input costs, reinforcing pricing power. Expanding lab-grown diamond offerings and experiential retail enhance customer engagement. With broad geographic reach and strong brand equity, Signet is well-positioned to capture sustained luxury demand and growth into 2026.
The Zacks Consensus Estimate for SIG’s fiscal 2026 revenues and EPS suggests increases of 1.4% and 3.1%, respectively, from the year-ago period’s reported levels. The company delivered an earnings surprise of 86.8%, on average, in the trailing four quarters. SIG currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
Host Hotels & Resorts, Inc. (HST - Free Report) : The company is a leading owner of luxury and upper-upscale hotels, with a globally diversified portfolio spanning marquee urban and resort destinations. Its scale, premium asset mix and asset-light REIT model provide strong exposure to resilient luxury travel demand. Management highlighted sustained strength in affluent leisure travel, robust resort performance and improving group bookings, with 2026 group revenues pacing ahead across key markets.
Strategic reinvestments through transformational renovations enhance pricing power, guest experiences and long-term returns. Supported by global appeal, disciplined capital allocation and strong balance sheet flexibility, HST is well-positioned to capitalize on premium travel trends and drive attractive growth into 2026.
The Zacks Consensus Estimate for HST’s 2026 revenues suggests an increase of 1.2% from the year-ago period’s actual. The company delivered an earnings surprise of 11%, on average, in the trailing four quarters. HST currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
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Luxury Market Boom: 3 High-End Retail Stocks to Buy for 2026
Key Takeaways
The global luxury market is entering a renewed phase of strength after navigating a period of cyclical softness. High-end retail stocks are once again attracting investor interest as spending by affluent consumers proves more durable than expected. A combination of resilient consumer demand, rising household wealth in key markets, continued appetite for premium goods and sustained brand desirability creates a supportive backdrop for luxury companies with global scale and strong execution.
As wealth creation accelerates across developed economies and select emerging markets, high-income consumers are regaining confidence in discretionary spending. Purchases of luxury handbags, fine jewelry and high-end travel experiences have remained resilient, reflecting both financial capacity and emotional attachment to iconic brands. This environment favors luxury companies that can pair pricing power with expanded global reach.
Understanding the Factors Driving the Luxury Boom
Two structural advantages are underpinning the luxury market’s momentum — pricing power and global appeal. Unlike mass-market retailers, luxury brands operate on scarcity, heritage and craftsmanship, allowing them to raise prices gradually without undermining customer demand, even in periods of economic uncertainty. Affluent consumers are typically less price-sensitive, especially for iconic handbags, fine jewelry and premium experiences that retain long-term value. Strong brand equity, limited supply and healthy resale reinforce customer loyalty, supporting consistent price increases and margin protection.
Global appeal adds another layer of strength. Luxury demand is geographically diversified, reducing the reliance on any single market. As international travel continues to normalize, tourist spending in major luxury hubs, such as Paris, Milan and New York, has accelerated. Meanwhile, rising disposable incomes in emerging markets continue to expand the pool of high-end consumers worldwide.
Together, pricing power and worldwide demand create a resilient growth model that helps luxury brands outperform broader retail and sustain momentum despite inflation and economic uncertainty. For investors, this combination supports a favorable outlook for well-positioned luxury stocks as the sector moves toward 2026 and beyond.
Our Picks
Investors seeking to benefit from the ongoing luxury upswing should focus on companies that pair powerful brand equity with disciplined expansion and a growing digital footprint, positioning them for sustainable growth in 2026 and beyond.
Below, we highlight three premium stocks, spanning fashion, jewelry and travel, which demonstrate how pricing power and global appeal can translate into meaningful upside in 2026.
Tapestry, Inc. (TPR - Free Report) : The company is firmly positioned within the global luxury retail market, anchored by its flagship brand Coach and supported by Kate Spade, providing broad exposure to premium handbags, accessories and lifestyle categories. Management cited a strong start to fiscal 2026, driven by accelerating demand, robust customer acquisition, particularly among Gen Z, and growth across North America, Europe and China.
Coach remains the key growth engine, benefiting from product innovation, disciplined promotions and rising average unit retail, highlighting improving pricing power. Tapestry’s direct-to-consumer and digital-first strategy enhances engagement and margin resilience. With accessible luxury positioning and global brand appeal, Tapestry is well-positioned to sustain growth into 2026.
The Zacks Consensus Estimate for TPR’s fiscal 2026 revenues and EPS indicates increases of 5.1% and 9.6%, respectively, from the year-ago period’s reported levels. The company delivered an earnings surprise of 11%, on average, in the trailing four quarters. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Signet Jewelers Limited (SIG - Free Report) : The company is a dominant force in the luxury jewelry market, anchored by leading brands such as Kay, Zales and Jared, with strong exposure to bridal and fashion jewelry. Management noted resilient demand from higher-income consumers, supported by steady same-store sales growth and continued strength in bridal categories.
Under its Grow Brand Love strategy, Signet is emphasizing brand-led assortments, disciplined promotions and pricing actions to offset higher input costs, reinforcing pricing power. Expanding lab-grown diamond offerings and experiential retail enhance customer engagement. With broad geographic reach and strong brand equity, Signet is well-positioned to capture sustained luxury demand and growth into 2026.
The Zacks Consensus Estimate for SIG’s fiscal 2026 revenues and EPS suggests increases of 1.4% and 3.1%, respectively, from the year-ago period’s reported levels. The company delivered an earnings surprise of 86.8%, on average, in the trailing four quarters. SIG currently has a Zacks Rank #2.
Image Source: Zacks Investment Research
Host Hotels & Resorts, Inc. (HST - Free Report) : The company is a leading owner of luxury and upper-upscale hotels, with a globally diversified portfolio spanning marquee urban and resort destinations. Its scale, premium asset mix and asset-light REIT model provide strong exposure to resilient luxury travel demand. Management highlighted sustained strength in affluent leisure travel, robust resort performance and improving group bookings, with 2026 group revenues pacing ahead across key markets.
Strategic reinvestments through transformational renovations enhance pricing power, guest experiences and long-term returns. Supported by global appeal, disciplined capital allocation and strong balance sheet flexibility, HST is well-positioned to capitalize on premium travel trends and drive attractive growth into 2026.
The Zacks Consensus Estimate for HST’s 2026 revenues suggests an increase of 1.2% from the year-ago period’s actual. The company delivered an earnings surprise of 11%, on average, in the trailing four quarters. HST currently has a Zacks Rank #2.
Image Source: Zacks Investment Research