Negative session on Piazza Affari for the fashion brand Moncler (-2.67% to 57.58 euros), after the reduction of the target price (from 69 to 65 euros) by Oddo Bhfwith a neutral opinion.
Analysts have included in their estimates “a more marked slowdown in growth in the second quarter”. Overall, the EBIT forecasts are reduced by 1% for 2024 and by 2% for 2025 and 2026. Experts observe that the stock has performed better than the sector since the beginning of the year and that «the stock now shows a higher premium consistent (around 5%) on the multiples compared to the benchmark of the LVMH sector”.
Luxury under pressure in China
More generally, the luxury sector is under pressure. The brands of luxury Europeans have started to apply discounts never seen before towards the Asian market, especially towards Chinese buyers. This could reflect growing concern about unsold merchandise, or a sign that i Chinese consumers they are reducing expenses. For example Balenciaga, of the Kering group, discounted items in China by an average of 40% in the first quarter. Also Versace, by Capri Holdings, Givenchy (LVMH) and Burberry have slashed prices, some by more than half, on Tmall and other Chinese platforms this month. In Paris LVMH fell by more than 1%, Kering gained 2.5%; while in Hong Kong Prada lost 1.7%. (All rights reserved)
Posting time: 06/18/2024 5.30pm
Last update: 06/18/2024 5.49pm
