Luxury goods slumped on the stock market on Monday

[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]

The combination of disappointing announcements for the Chinese economy in the second quarter, on the one hand, and the quarterly results of Richemont, which is slowing down across the Atlantic, on the other, had a major impact on luxury stocks yesterday.

Black Monday for luxury stocks.

While they have hitherto seemed impervious to economic downturns, France’s leading luxury goods companies fell sharply on the Paris Bourse yesterday. This followed the announcement of a slowdown in growth in China in the second quarter.

China is a major market, and all the more strategic for the sector at a time when signs of a slowdown are appearing across the Atlantic, another major outlet for luxury goods.

 

Decline for all the big names in luxury goods

 

Lvmh, the world leader in the sector and the largest market capitalisation on the CAC 40, fell by 3.73% to 859 euros. The second largest French group in the sector, Kering, lost 1.95% to 490.25 euros.

 

But it was Hermès that suffered the most spectacular fall, dropping 4.2% to €1912.

 

L’Oréal, the world’s leading beauty company, was also hit, falling by 1.81% to 413.95 euros.

 

The collapse of what is one of the Paris Bourse’s major sectors, Luxury Goods, as well as the bad news on the Chinese front, caused its index to fall yesterday by 1.12% to 7,291.66 points.

 

The previous week, however, the CAC40 index had gained 3.69%, its best weekly advance since the end of March.

 

Disappointing Richemont results

 

But the reason why French luxury groups were so badly hit yesterday was also due to the announcements made yesterday morning by the Swiss group Richemont, the owner of Cartier. The group unveiled worse-than-expected results for its first quarter of 2023-2024, ending on 1 July 2023. The results were affected by a slight decline in sales in the US.

 

The share price of Swiss group Richemont, which is listed in Zurich, even fell by 10% to 138.6 Swiss francs last night!

 

The case of Richemont has thus influenced the reactions of investors on the Paris stock exchange, by asking the burning question. For several months, the idea that the Chinese rebound could compensate for the slowdown in the US market had underpinned the dynamism of luxury shares.

 

More volatile shares

Today, this hypothesis is likely to be called into question.

The imminent announcement of quarterly results from other luxury goods companies, starting with Lvmh on 25 July, may provide some clarity…

In any case, some analysts are warning that luxury stocks are likely to be more sensitive to the macro-economic environment and more volatile than in recent months. Even so, they recommend holding on to the strongest stocks…

 

Read also > Stock market: suspense as we await new US employment figures – Luxus Plus (luxus-plus.com)

 

Featured photo : © Press[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]

The combination of disappointing announcements for the Chinese economy in the second quarter, on the one hand, and the quarterly results of Richemont, which is slowing down across the Atlantic, on the other, had a major impact on luxury stocks yesterday.

Black Monday for luxury stocks.

While they have hitherto seemed impervious to economic downturns, France’s leading luxury goods companies fell sharply on the Paris Bourse yesterday. This followed the announcement of a slowdown in growth in China in the second quarter.

China is a major market, and all the more strategic for the sector at a time when signs of a slowdown are appearing across the Atlantic, another major outlet for luxury goods.

 

Decline for all the big names in luxury goods

 

Lvmh, the world leader in the sector and the largest market capitalisation on the CAC 40, fell by 3.73% to 859 euros. The second largest French group in the sector, Kering, lost 1.95% to 490.25 euros.

 

But it was Hermès that suffered the most spectacular fall, dropping 4.2% to €1912.

 

L’Oréal, the world’s leading beauty company, was also hit, falling by 1.81% to 413.95 euros.

 

The collapse of what is one of the Paris Bourse’s major sectors, Luxury Goods, as well as the bad news on the Chinese front, caused its index to fall yesterday by 1.12% to 7,291.66 points.

 

The previous week, however, the CAC40 index had gained 3.69%, its best weekly advance since the end of March.

 

 

 

[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…

Already have an account ? Please log in.

[/vc_cta][vc_column_text]Featured photo : © Press[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]

The combination of disappointing announcements for the Chinese economy in the second quarter, on the one hand, and the quarterly results of Richemont, which is slowing down across the Atlantic, on the other, had a major impact on luxury stocks yesterday.

Black Monday for luxury stocks.

While they have hitherto seemed impervious to economic downturns, France’s leading luxury goods companies fell sharply on the Paris Bourse yesterday. This followed the announcement of a slowdown in growth in China in the second quarter.

China is a major market, and all the more strategic for the sector at a time when signs of a slowdown are appearing across the Atlantic, another major outlet for luxury goods.

 

Decline for all the big names in luxury goods

 

Lvmh, the world leader in the sector and the largest market capitalisation on the CAC 40, fell by 3.73% to 859 euros. The second largest French group in the sector, Kering, lost 1.95% to 490.25 euros.

 

But it was Hermès that suffered the most spectacular fall, dropping 4.2% to €1912.

 

L’Oréal, the world’s leading beauty company, was also hit, falling by 1.81% to 413.95 euros.

 

The collapse of what is one of the Paris Bourse’s major sectors, Luxury Goods, as well as the bad news on the Chinese front, caused its index to fall yesterday by 1.12% to 7,291.66 points.

 

The previous week, however, the CAC40 index had gained 3.69%, its best weekly advance since the end of March.

 

 

[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…

Already have an account ? Please log in.

[/vc_cta][vc_column_text]Featured photo : © Press[/vc_column_text][/vc_column][/vc_row]

Picture of Victor Gosselin
Victor Gosselin
Victor Gosselin is a journalist specializing in luxury, HR, tech, retail, and editorial consulting. A graduate of EIML Paris, he has been working in the luxury industry for 9 years. Fond of fashion, Asia, history, and long format, this ex-Welcome To The Jungle and Time To Disrupt likes to analyze the news from a sociological and cultural angle.

Subscribe to our Newsletter

Sign up now to receive sneak previews of our programs and articles!

Launch offer:

Your participation in the Camille Fournet Masterclass reserved for annual subscriber !

Luxus Plus Newsletter