EXCLUSIVE: Luxury Is 'Going For A Critical Turnaround,' Tema ETF CEO Says

The luxury market is at a critical turning point, with a clear divide emerging between legacy brands and aspirational players, according to Maurits Pot, CEO of Tema ETFs.

In an exclusive interview with Benzinga, Pot emphasized that high-end brands like Hermès International SA (OTCPK: HESAY) and Ferrari N.V. (NYSE:RACE), supported by loyal, affluent clients, are set to outperform, while more aspirational names such as LVMH-Moët Hennessy Louis Vuitton (OTCPK: LVMUY) and Burberry Group plc (OTCPK: BURBY) face greater vulnerability due to shifting consumer behavior and economic slowdowns in key markets like China and Europe.

“Luxury is going for a turnaround, and we're seeing a greater differentiation between true luxury and aspirational brands,” Pot said.

With a number of companies underperforming, particularly LVMH, which recently reported disappointing results, Pot highlighted that these outcomes aren’t surprising given macroeconomic headwinds.

Pot stressed that investors should now focus on a clear divide between high-end brands and those catering to more discretionary spending.

China’s Stimulus ...