After three years of record growth, luxury companies are feeling the pain as sales slow to a more normal pace.
Nowhere have the struggles of the luxury sector been more prominent than in the French conglomerate LVMH Moet Hennessy Louis Vuitton , the group's bellwether.
This dynamic tends to hurt the less-prestigious luxury brands more, according to Rogerio Fujimori, an analyst at Stifel.
"Chinese [consumers] are back to Southeast Asia and Japan, but there's still a long way to go in terms of Europe.
LVMH and other European luxury brands have been market leaders among European equities since 2021 until the first half of 2023.
Persons:
Richemont, Burkhart Grund, LVMH Moet Hennessy Louis Vuitton, Gucci, Ashley Wallace, Bernstein, Luca Sola, Rogerio Fujimori, Fujimori, Wallace, Stifel's Fujimori, there's, Richemont's Grund, —, Fujimori foresees, we've, Hermes, Brunello, Thomas Chauvet, Louis Vuitton, Brunello Cucinelli, LVMH, Dior, Markus Hansen, Hansen, America's Wallace, It's, Vontobel's Hansen, — CNBC's Michael Bloom
Organizations:
Cartier, Bank of America, U.S, U.S ., EU, Europe, Citi, Bank, Gucci, Bottega
Locations:
U.S, Europe, Japan, China, Southeast Asia, China's, Thursday's, Kering