Earnings at Luxury Brands Are Expected to Reflect Turnaround in Growth; Bets on China and U.S. consumers, receding security fears in Europe are driving optimism

Analysts say the industry isn't about to repeat the performance from 2010 to 2014, when surging demand for luxury goods from Chinese consumers and economic recovery in the U.S.generated annual growth rates of 5% or higher. Among other reasons: The Chinese economy has slowed significantly since 2012.

"Sales growth will continue, but rebased around 2% to 3% per year on average," says Marc-André Kamel, a partner with Bain & Company's retail practice.