London CNN —The value of some of the world’s best-known luxury companies is plunging as Chinese consumers pull back on spending, with even the most exclusive brands feeling the pain.
The rout seems to be accelerating, with those sales tumbling 14% in the second quarter, according to results published late Tuesday.
“For now, the (luxury) market remains volatile as investors reassess the once-held belief that luxury brands are a safe-haven investment, shielded from broader economic downturns,” Jochen Stanzl, chief market analyst at CMC Markets, told CNN.
“The Chinese market contracted slightly; the market situation in the premium and luxury segment in China remained weak,” the company said.
China’s economy grew 4.7% year-on-year in the second quarter of the year, according to official data released last week, missing economists’ expectations and marking the weakest growth since the first quarter of 2023.
Persons:
Bernard Arnault’s, Louis Vuitton, Christian Dior, ” Jochen Stanzl, Richemont, Cartier, ”, Gucci, Kering, Hermes, Birkin, Olesya Dmitracova
Organizations:
London CNN, Prada, CMC Markets, CNN, Europe’s, Reuters, Porsche, Benz, Bain & Company
Locations:
Asia, Japan, China, Paris, Hong Kong, China , Hong Kong, Macao, North America, Europe, United States