The episode argues that luxury is more cyclical than it once appeared because aspirational customers have retreated while the wealthiest continue spending. LVMH is more exposed to weaker fashion, leather, cognac, and middle-class demand, whereas Hermès benefits from scarcity and stronger access to top-tier customers, despite concentration risks. China’s property downturn and the absence of a new wave of luxury buyers make this recovery harder to time. Updated valuation work gives Hermès the better long-term profile, while LVMH remains above the hosts’ required hurdle rate. Neither company is added to the portfolio because the hosts want a more distressed entry point without lasting brand damage.