The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Shares in European luxury goods companies were among the worst performers on Thursday in a broader stock market downturn, with traders and analysts citing persistent concerns over a slowdown in China.
Kering shares, which hit a record high of 522.40 euros in July, were down 5.8 percent at 435.70 euros.
Kering's French rival LVMH, whose shares also hit a record high in May and which reports third-quarter revenue next week, were down 3.7 percent while Burberry fell 4.3 percent.
"We expect further solid momentum in the luxury sector in coming years, driven by the increasing size of the middle class and affluent clienteles in China, the appetite of millennials for luxury brands, especially in Asia and China and the strong potential of e-commerce in a more digital world," brokerage Bryan Garnier wrote in a research note.
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"Some slowdown is nevertheless likely in coming quarters given challenging comparison bases and uncertainty in China, even though companies have noted no sudden break in the trend in recent months," added Bryan Garnier.
By Sudip Kar-Gupta, Danilo Masoni and Blandine Henault; editor: Jason Neely.
The Hood By Air co-founder’s ready-to-wear capsule for the Paris-based perfume and fashion house will be timed to coincide with the Met Gala in New York.
Revenues fell on a reported basis, confirming sector-wide fears that luxury demand would continue to slow.
IWC’s chief executive says it will keep leaning into its environmental message. But the watchmaker has scrapped a flagship sustainability report, and sustainability was less of a focus overall at this year’s Watches and Wonders Geneva.
The larger-than-life Italian designer, who built a fashion empire based on his own image, died in Florence last Friday.