The luxury goods sector has outperformed the European equity market in the last 12 months driven by the broader market appetite for cyclicals and improving sales growth in 2H. For the upcoming reporting season, and the respective stock price movements, we believe 1Q could be a similar scenario to 4Q whereby strong beats will be needed, particularly in soft luxury, to drive share prices higher. Positive surprises could come from greater sales growth acceleration than currently expected. We believe this is largely possible given the greater weight of the faster-growing Chinese clientele in 1Q than in 4Q and relatively easy comps