The already weakening sector of the luxury goods manufacturer hit a new blow in early trade on Tuesday.
Disappointing sales figures for the heavyweight LVMH not only stressed its stock, but also other values in the industry. Obviously, market participants see: inside the bad news from Paris as a menetcle for the upcoming numbers of other manufacturers of high -priced products.
While LVMH fell by over eight percent and thus moved again in the area of the annual low, Kering gave up by 2.4 percent and Hermes 1.6 percent. Regardless of the levies, the latter managed to swing up to the now most expensive luxury company in the world and thus barely pass LVMH. Despite clear taxes this year, the share had kept much better this year than LVMH. Both companies bring a market capitalization of a good 243 billion euros to the stock exchange scale.
The French luxury goods group LVMH had implemented significantly less at the start of the year due to the uncertainties as a result of the trade conflict. In the first quarter, the proceeds fell by two percent to 20.3 billion euros compared to the previous year. Adjusted for takeover and currency effects, the decline was three percent.
Analyst: In the inside, an early improvement do not expect. “Due to the current geopolitical herd of crisis (Ukraine, Israel) and the economic weakness in some sales regions (China), sales dynamics in the last quarters cloud into account,” said the experts from the Landesbank Baden-Württemberg. “In view of Trump’s customs policy, this trend will continue to continue with negative effects in the coming months.”
The expert: Inside Deutsche Bank, a negative requirement for the sector spoke. Only the good development in the segment of the gemstones mountains a positive message for competitor Richemont, whose share price did not benefit.