Burberry recovery remains too risky for JPMorgan even as luxury growth improves Proactive uses images sourced from ShutterstockBurberry Group PLC (LSE:BRBY) remains one of JPMorgan's least-favoured luxury stocks despite signs that demand across the sector improved during the second quarter. She cited continued economic uncertainty, the execution risks surrounding their turnarounds and potential pressure on earnings forecasts. Demand for leather goods also showed signs of bottoming out, suggesting handbags and similar products remained relevant to consumers despite a prolonged slowdown. Sales volumes at the larger luxury groups were still flat or declining despite supportive financial markets. Battistini warned that weaker US credit-card spending in July, uncertainty over the durability of South Korean demand and tougher comparisons during the second half left the wider recovery fragile.