×
73 810
Fashion Jobs
MICHAEL KORS
Part Time Sales Supervisor, Easton Town Center - Columbus, oh
Permanent · Région métropolitaine de Columbus
SACK OFF 5TH
Asset Protection Uniformed Guard
Permanent · ELIZABETH
SACK OFF 5TH
Asset Protection Uniformed Guard
Permanent · WOODBURY
SACK OFF 5TH
Asset Protection Uniformed Guard
Permanent · BRIDGEWATER TOWNSHIP
SACK OFF 5TH
Asset Protection Uniformed Guard
Permanent · PARAMUS
SACK OFF 5TH
Asset Protection Uniformed Guard
Permanent · NEW YORK
SACK OFF 5TH
Asset Protection Guard
Permanent · COSTA MESA
AESOP
Part-Time Retail Consultant | Fairfax
Permanent · Los Angeles
AESOP
Part-Time Retail Consultant | Coconut Grove
Permanent · Miami
THE REALREAL
Inside Sales Luxury Account Manager (Luxury Account Specialist) - West
Permanent · Los Angeles
THE REALREAL
Loss Prevention Specialist
Permanent · Secaucus
AMERICAN EAGLE OUTFITTERS
Supply Chain Analyst - Quiet Platforms
Permanent · PITTSBURGH
TJX COMPANIES
Senior Financial Analyst
Permanent · Framingham
TJ MAXX
Loss Prevention Detective 239
Permanent · St. Louis Park
TJ MAXX
Loss Prevention Customer Service Associate
Permanent · Milwaukee
HOMEGOODS
Assistant General Manager
Permanent · Tucson
MARSHALLS
70122-pt Cleaning Associate - Now Hiring
Permanent · Las Vegas
TJ MAXX
Loss Prevention Detective - Southland
Permanent · Miami
ON RUNNING
Head of Logistics
Permanent · PORTLAND
CENTRIC BRANDS
Director, Sales (Izod)
Permanent · New York
ULTA BEAUTY, INC.
General Manager
Permanent · Gretna
ULTA BEAUTY, INC.
Retail Operations Manager
Permanent · New Caney
By
Reuters API
Published
Nov 10, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

European luxury stocks slide on China stagflation concerns

By
Reuters API
Published
Nov 10, 2021

European luxury stocks were the top decliners in London, Paris and Milan on Wednesday after data showed China's factory inflation jumped in October, heightening stagflation concerns in the country, a top buyer of high-end products.


DR



Renewed concerns over the impact of a fresh wave of COVID-19 infections in Asia overshadowed better than expected third-quarter results for Ferragamo, putting its shares on course for their biggest daily drop since June 2020, down 6%.

Shares in Kering, Hermes, Moncler, LVMH, and Burberry fell between 2% and 3%, underperforming the broader European market, with the pan European index flat by 1400 GMT.

China's factory gate inflation hit a 26-year high in October, squeezing profit margins for producers and boosting growth concerns in the world's second-largest economy.

Neil Wilson, chief market analyst at Markets.com, said rising inflation coupled with weakening Chinese import figures earlier this week were "suggestive of slower domestic demand" for European luxury brands.

Demand for high-end products in China is the main driver for the sector, accounting for a third of European luxury goods makers' sales in 2019 and 28% in 2020, according to UBS analysts.

The European luxury sector slumped 15% from August to October after China announced plans to redistribute wealth, interrupting a whopping 140% rise from March 2020 to August 2021.

The sector had recovered almost all of its summer loss since October, with analysts saying strong earnings were supporting the shares.

Economic growth in China is set to slow further in the December quarter from one-year lows set in the previous three months.

Analysts said a mix of rising COVID-19 cases in Asia and risks around developer China Evergrande Group's debt crisis could affect growth in China, further limiting earnings momentum for some luxury companies.

Goldman Sachs this week cut its forecasts for global luxury industry sales growth in 2022 by more than 33% to 9% and 2023 estimates by almost 40% to 7% amid global economic growth uncertainty.
 

© Thomson Reuters 2023 All rights reserved.