Hermès: continues to outperform the market, with high single-digit growth becoming the new normal. Barclays: Encouraging progress toward 2025 targets, but a relatively weak UK wealth proposition remains a hurdle to rapid growth.

In the luxury space, Yanmei Tang, Analyst at Third Bridge makes comments regarding Hermès, informed by insights from industry experts:

Our experts say the global luxury market is likely to return to modest growth in 2026, with sales rising around 3-5% after a volatile period marked by slowing demand and consumer pushback on pricing. The recovery is expected to be uneven, with performance diverging sharply by brand.

Our experts also say Hermès is well positioned to continue outperforming the broader luxury market, with high single digit growth increasingly seen as its structural baseline. Momentum in the United States is particularly strong, reflecting an underpenetrated market where the brand still has significant room to expand.

At the same time, our experts note that rising scrutiny over sourcing and labour practices represents a growing risk for the luxury industry as a whole. Hermès is seen as comparatively well protected due to its high level of vertical integration and long-standing relationships with suppliers.

Watches and fragrances remain Hermès’ weakest divisions, with watches having declined in 2024 and 2025 amid heavy exposure to China and intensifying competition from the secondhand market.


In the financial space, Max Harper, Analyst at Third Bridge made a series of remarks regarding Barclays.

Barclays has delivered a resilient performance, with revenues beating consensus by 0.44%. This result reinforces the bank’s ability to perform across various economic cycles, and the upgraded 2026 guidance should be well-received by the market.

The bank's progress toward its 2025 targets is encouraging. Income is growing steadily, supported by the structural hedge bolstering NII and the market environment driving non-NII growth, alongside strategy. Looking ahead, future revenue growth should be focused on Barclays driving cross-sales across its existing customer base, with targeted acquisitions such as the Tesco Bank retail business likely to be accretive.

However, there are still gaps in the strategy. NatWest’s acquisition of Evelyn Partners represents a missed opportunity for Barclays; our experts continue to highlight the bank's relatively weak UK wealth proposition as an area where a bold move could have driven rapid growth.