Luxury brand stocks have proven to be a great investment throughout the decades. The combination of powerful brands and tremendous pricing power tends to lead to superior earnings growth compared to other consumer-focused companies.

However, the luxury market is in a bit of a tailspin right now. Many people spent at a record clip in 2021 and 2022 and are cutting back consumption a bit now. Higher interest rates have limited credit-driven consumption. A downturn in the Asian market has hurt sales with that increasingly important group of upscale shoppers.

Fortunately for investors, however, these near-term challenges have created tremendous opportunity. These three luxury brand stocks have sold off in 2023 and are now on sale at great entry points heading into this holiday season.

Estee Lauder (EL)

Estee Lauder (NYSE:EL) is one of the world’s leading cosmetic companies. It sells a vast array of beauty products around the globe and has marketing channels across various demographics and price points.

Normally, Estee Lauder has shown steady strong growth throughout the years. However, the firm’s results became more volatile starting in 2020.

At first, investors feared a growth slowdown as malls and other retail shops slowed down. However, direct-to-consumer and e-commerce channels more than made up for this. In fact, Estee Lauder posted record earnings in 2021 that were far in excess of what the company was earning prior to the pandemic.

However, this quickly ended. Now, earnings have plunged as retailers bought too much cosmetics inventory and are now working to get their supplies back to more normal levels. The Asian market has shown particularly weak sales this year.

In the longer-term, however, cosmetics demand should continue trending higher. That’s especially true thanks to the proliferation of social media and influencer culture.

LVMH Moet Hennessy Louis Vuitton (LVMUY)

LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) is a leading luxury goods retailer.

It sells a wide variety of upscale and luxury goods across segments including watches and jewelry, wine and spirits, perfumes, fashion and leather goods, and selective retailing and duty-free stores. Key brands include Louis Vuitton, Bulgari, Fendi, Givenchy and Sephora among others. LVMH is truly one of the world’s great luxury conglomerates.

Shares have slumped over the past quarter. This came as the company reported relatively weak quarterly earnings. Revenues grew just 9% year-over-year, which was a significant deceleration from prior growth rates.

Regardless, a business is clearly doing well when 9% revenue growth is viewed as a bad result. In any case, LVMH is set to profit as the world’s elites continue to spend more money. And now, investors can cash in as well thanks to the recent correction in the firm’s stock price.

Remy Cointreau (REMYY)

Remy Cointreau (OTCMKTS:REMYY) is a French spirits and wine company founded way back in 1724.

The company is most well-known for its Remy Martin and Louis XIII cognacs along with Cointreau liqueur in addition to a variety of other spirits and champagnes. The company’s luxury brands have a long and treasured connection with consumers; indeed, the company is preparing to celebrate its 300th anniversary next year with a large line of collectible editions of the firm’s flagship cognacs.

Investors are also getting a bargain here as well. After a strong rally in 2020, shares have sold off sharply. Remy Cointreau has a significant presence in the Asian market, and has been hurt by the slowdown in consumer spending there. Consumer staples stocks in general have been under pressure. With REMYY stock back near its COVID-19 lows, it’s time to buy this luxury stock on the cheap.

On the date of publication, Ian Bezek held a long position in LVMUY and EL stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.