Despite the drag from China, the luxury sector returned to stronger growth in the second quarter. HSBC anticipated a 4.3% increase in global luxury sales in Q2 2026, compared with 4.9% in Q1. However, the average organic sales growth of the sector materialized at 7%. Here are the key takeaways from luxury’s Q2 earnings. China’s engine is sputtering, South Korea’s is booming“The sector’s growth is concentrated within a very narrow base,” says Morgan Stanley managing director Édouard Aubin.