It’s been a boom time for defense companies for the last few years—and the opposite of that for luxury companies.
The result? German arms maker Rheinmetall will soon become part of the Euro Stoxx 50 benchmark of the largest listed European firms, replacing Gucci owner Kering.
Other members of the Euro Stoxx 50 include LVMH, Novo Nordisk, and Mercedes-Benz.
JPMorgan analyst Pankaj Gupta referred to a possible reshuffle in the index’s companies in a note from May 22, highlighting that Deutsche Bank and energy firm Siemens could also be likely additions over the year.
Kering’s shares are down 47.4% over the last year.
The trench coat maker had also struggled with poor performance as the appetite for luxury goods, particularly in China, began to wane amid economic pressures.
In recent months, some of the best-performing stocks on the Euro Stoxx 50 include other companies that dabble in defense, such as Safran and Airbus.
Stoxx, Rheinmetall, and Kering didn’t immediately return Fortune’s request for comment.
