The luxury goods market is bracing itself for a slowdown in sales, mainly in China, in anticipation of mixed quarterly results for the major Houses. Sluggish demand in the country is raising concerns about a possible prolonged crisis in this key market.
Investors are preparing for a sharp slowdown in quarterly sales in the luxury goods sector, particularly in China, ahead of the publication of results for the January-March period. This anticipation stems from sluggish demand in the Middle Kingdom, contrasting with the rebound in sales seen in the first quarter of 2023 with Beijing’s lifting of strict sanitary measures linked to Covid.
LVMH, the world’s leading group in the sector, will publish its results on April 16, followed by rivals Kering, Prada and Hermès the following week. Burberry and Richemont will announce their results in May.
Uncertainty has been hanging over the luxury goods companies’ earnings season since Kering unexpectedly warned last month that first-quarter sales were set to decline by 10%, compared with the 3% drop anticipated by analysts.
Kering attributed this forecast to the fall in Asian sales of its flagship brand, Gucci.
Sales normalization
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Featured photo : © Hermes
