From Euronews: 2024-06-05 05:53:51

European luxury stocks are facing growth slowdowns due to weakened global purchasing power, especially in China. Most major luxury companies reported negative impacts from weakened consumer demand in Asia and the US. LVMH saw a 2% revenue drop, Kering experienced an 11% sales decline, and overall luxury sales are expected to slow globally.

Chinese tourism recovery is crucial for driving luxury consumption, but economic factors like property market turmoil and employment slowdowns are hindering progress. Domestic tourism is on the rise, but outbound Chinese tourism is expected to remain subdued due to financial constraints and visa complications, impacting luxury spending.

Despite current challenges, the luxury sector is predicted to bounce back with the return of Chinese tourists to pre-pandemic levels by 2025. Central banks may soon cut interest rates, potentially boosting consumer and business confidence. The European Central Bank is expected to lower interest rates by 25 basis points, which could benefit European luxury stocks in the long term.



Read more at Euronews: Europe’s luxury stocks set for growth challenges in 2024