Cautious tones from analysts regarding the luxury goods sector put some pressure on the shares of the industry’s major players on Wednesday. Above all, concerns about the buying mood of Chinese consumers have left Deutsche Bank experts cautious about the second half of the year. The analysis house Jefferies has identified Hugo Boss as a clear favorite in the sector; the upgrade to “Buy” for the company from the MDax drove the shares up by 1.8 percent to 66.40 euros in the early afternoon.
In the midst of difficult times for the industry, there are only two buy recommendations: Hugo Boss and Richemont, wrote Jefferies analyst James Grzinic. The fashion group is “a boss for all four seasons”. The investment story is characterized by increases in market share, potential for margin recovery and lower valuations. Richemont shares still fell by 1.9 percent.
Analyst Matt Garland from Deutsche Bank expects a slowdown in consumption in China, but this is extremely important for the industry. The Chinese government’s economic stimulus measures are unlikely to have a real impact until 2024, if at all. Garland sees significant problems for Moncler, especially since the shares have developed very strongly compared to the competition. The purchase recommendation he therefore canceled left the Moncler papers largely unaffected. They fell by 0.1 percent – albeit in an overall friendly market environment. Jefferies also lowered Moncler to hold, as did LVMH and Kering.
LVMH shares also held steady at the previous day’s close in the firmer overall market. Grzinic expects that the French luxury group will probably do better than the industry in the coming months simply because of its sheer size. The Jefferies expert is optimistic about the price development, especially in the longer term. Initially, uncertainty dominates, including in the USA and Europe. At Kering, everything revolves around Gucci and the question of when the brand will become a hit again. Kering shares fell by 0.8 percent. (dpa)