A post-pandemic spending surge led to luxury stocks such as LVMH to reach all-time highs in early 2023, but that soon changed.
We believe improved confidence and sentiment is required to reach even our flat year-over-year Chinese luxury growth forecast for 2025," Wallace noted.
Luxury stocks are feeling the pressure — year to date, U.S.-traded shares of major players LVMH and Kering are down about 17% and 41%, respectively.
Analysts and investors are mixed as to whether the Chinese stimulus measures can revive luxury spending growth among consumers — and whether it will create a meaningful tailwind for luxury companies.
Whether the luxury sector can continue growing at the same levels without as much Chinese consumer spending remains in question.
Persons:
— stoking, Ben Harburg, Morgan Stanley, Ashley Wallace, Wallace, Jean, Jacques Guiony, Moncler, Hermes, Prada, Richemont, LVMUY CFRUY, —, Edouard Aubin, Sauron, Harburg, LVMH's Guiony, we've
Organizations:
Alpha, Bank of America, of America, Consumers
Locations:
China, Covid, 3Q24, U.S, LVMH