Luxury brand stocks fall amid Persian Gulf crisis and China slowdown
Updated
Updated · MarketWatch · May 6
Luxury brand stocks fall amid Persian Gulf crisis and China slowdown
3 articles · Updated · MarketWatch · May 6
Summary
Prada is down 20% this year, Hermès 25%, LVMH 30%, Kering 25%, Richemont 14% and Ferrari has also declined.
Fund manager Joanna Sawicka said luxury shares often track travel sentiment because many purchases are made while travelling, while weak Chinese demand has added pressure.
The report said valuations remain around 20 to 30 times forecast earnings, with Prada near 12 times, and a recovery in Chinese travel could help revive the sector.