The recent rally in the shares of luxury goods makers will be put to the test this earnings season, as valuations are already back at demanding levels.

After a rocky first half of the year, a gauge tracking the sector has jumped 14% over the past two months in a relief rally as damage from the Trump administration’s tariffs prove less severe than feared for exporters. That’s cranking up the pressure on companies to deliver market-pleasing results, even as they battle challenges like China’s uneven economic recovery and the stronger euro.

Earnings and sales growth for luxury companies has been lacking for almost two years amid falling demand from key markets such as China- which for decades had been a key support. Analysts have been cautious about calling a recovery, with data from Deutsc

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