HSBC Raised Its Price Targets for LVMH & Hermès
It’s been a tough year for the luxury sector, but there’s hope on the horizon. According to HSBC, the beaten-down luxury market is poised to turn a corner in 2025, and they’re betting on two major players—LVMH Moët Hennessy Louis Vuitton and Hermès International.
HSBC raised its price targets for both companies this week, predicting a recovery in China’s economy next year that will benefit luxury goods makers, who have been struggling with weak consumer spending in the region for the past two years. For LVMH, HSBC bumped its price target to €727 ($764), implying a 24% upside, while Hermès saw a 21% upside forecast, with a raised target of €2,500 from €2,250. This follows similar HSBC buy recommendations for Moncler, Richemont, Burberry, and Prada—as houses they see positioned for growth in the year ahead.
Despite the broader market challenges, PVH Corp. (owners of Calvin Klein and Tommy Hilfiger) managed to exceed expectations with Q3 earnings last week. The company reported $2.26 billion in revenue for Q3, surpassing analyst estimates of $2.22 billion, even with a 4.6% decline in sales. This performance demonstrates PVH’s ability to remain competitive amid a backdrop of economic uncertainty and heightened promotional activity in the retail sector.
PVH CEO Stefan Larsson pointed to the company’s strong direct-to-consumer business, which has helped offset some of the challenges in wholesale. And that Calvin Klein Jeremy Allen White ‘If You Feel Comfortable” campaign helped to propel them to a comfort zone. The company’s focus on digital and e-commerce channels, alongside its sustained global reach, has ensured that it continues to meet consumer demand despite market headwinds.
Perhaps the most exciting 2025 development for PVH is Calvin Klein’s upcoming return to the runway, which is expected to make waves. After a long absence from fashion week, the brand will be led by its first-ever female designer, Veronica Leoni, who takes over as Creative Director. Leoni, 41, brings a wealth of experience in modernized minimalism, having worked at houses such as Jil Sander, Celine (under Phoebe Philo), and The Row.
Her appointment signals a shift for the house, which has undergone a strategic repositioning over the past few years. Leoni’s debut collection for Calvin Klein, scheduled for Fall 2025, is expected to highlight her clean, modern aesthetic while reintroducing the brand’s quintessentially American spirit.
What makes this particularly intriguing is Leoni’s ability to blend high fashion with commercial sensibility—a key element that could steer Calvin Klein back into the spotlight. Her experience as the founder of her own label, Quira, which was shortlisted for the 2023 LVMH Prize, shows her ability to resonate with both fashion critics and consumers alike.
In her own words, Leoni is looking to inject a “new era” of energy and vision into Calvin Klein, marking the next phase for the iconic brand. Hopefully, Leoni’s fresh approach to design will be exactly what Calvin Klein needs to reestablish itself as a major player anchor for NYFW. Fashion insiders are already buzzing about the possibilities, and Leoni’s show in February 2025 is one of the most anticipated events on the calendar.
As Calvin Klein returns to the runway, we’re reminded that, indeed, nothing comes between us and the anticipation for what’s next.
