GS uses 'seven Cs' framework to navigate expected luxury recovery

** Goldman Sachs says the luxury sector can recover next year after prolonged sluggish performance, and gives its overview of stocks based on what it says are the "seven Cs"

** The broker sees organic sales growth rising to +7% next year from +6% in 2026

** It gives its framework for navigating the space by seven key attributes, such as clout, categories, consumer calibre, creativity, consistency, codes and icons, as well as corporate considerations

** GS starts four stocks with "buy": LVMH LVMH.PA, Prada 1913.F, Richemont CFR.S and Moncler MONC.MI

** It sees Richemont as "purest exposure to compounding jewelry growth" and flags leather goods rebound for LVMH

** The broker starts Kering PRTP.PA, Burberry BRBY.L and Brunello Cucinelli BCU.MI at "neutral" while reiterating the same rating for Zegna

** It initiates Hermes HRMS.PA and Swatch UHR.S at "sell" warning a "change in growth algorithm" for the former and limited scale that could influence the pace of margin recovery for the latter