Shares of luxury goods and fashion companies came under pressure on Wednesday following mixed economic data from China.
Although the country achieved its own economic growth target in 2023, the real estate market remains weak and people’s spending mood is weak. Unclear prospects for demand in China have recently weighed on luxury stocks, as the country is a very important market for companies.
The shares of LVMH and Kering fell by 1.5 and 2.6 percent respectively in the morning. Richemont and Swatch also fell.
On the German market, shares in the fashion tailor Hugo Boss lost 2.5 percent, but were still above the previous day’s low. On Tuesday, the Hugo Boss price ultimately fell by almost ten percent after the annual outlook was disappointing.
In the Dax, Adidas’ share price fell by 2.9 percent. For Puma, the MDax even fell by 5.6 percent to a low since November 2022.
Zalando at record low
The decline in Zalando shares continued on Wednesday with a record low. In early Xetra trading, the price fell below the 17 euro mark for the first time since the IPO in 2014. The paper was last traded at 16.45 euros, which means a loss of 4.3 percent compared to the Xetra closing price from the previous day.
Analyst Geoffroy de Mendez from Bank of America canceled his buy recommendation for the online fashion retailer’s shares after about a year. With a price target of 21 euros, he sees at least some potential for recovery after the rapid decline that the share has had in recent months. (dpa)