Luxury’s Rebound Is Proving Elusive as China Gloom Adds to Warnings
Investors in luxury stocks are facing challenges as companies like Burberry and Hugo Boss reported disappointing results, and economic data from China, a key market, indicates a lacklustre outlook. Richemont, the owner of Cartier, is set to provide insight into the luxury sector's performance as it reports third-quarter sales. Concerns about demand for luxury goods have grown, causing a drop in the European luxury sector. While valuations have fallen by over 20 percent, investors are hesitant to buy, and analysts have scaled down earnings expectations by over 5 percent. Hermes stands out as demand for its high-end handbags remains strong, but overall, the luxury sector faces uncertainties and challenges ahead.