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(Il Sole 24 Ore Radiocor) – The luxury sector is suffering in Piazza Affari. On the FTSE MIB, Brunello Cucinelli is positioned at the bottom of the list, while Moncler stands at parity, after closing at -2.7% on the eve, dragged down by Oddo Bhf’s decision to reduce the target price on the stock from 69 to 65 euros. The sector is slowing down renounces the listing of Golden Goose scheduled for June 21st: the company known for its luxury sneakers made the surprise announcement, after a process that had led to the IPO price being set at 9.75 euros per share, at the low end of the initial range between 9.50-10.50 euros per share.
The note speaks of a “significant deterioration in market conditions following this month’s European Parliament elections and the calling of general elections in France” which have negatively affected the performance of European markets “and, in particular, the luxury”. The company then specified that «an IPO for Golden Goose will be re-evaluated in due course».
Regarding the prospects of the sector, Altagamma announced that in the first quarter of 2024 there was a slight decline for personal luxury goodsbetween -1% and -3% at current rates, but specified that modest growth of up to 4% or 6% is expected for the entire year in the most optimistic scenario that could occur thanks to the recovery of tourist flows, a an improvement in the United States market in the second half of the year and the normalization of China, where a sort of modesty is spreading exhibit the purchase of luxury products.
«The Altagamma scenario – comment the Intermonte analysts – is consistent with the framework of the forecasts made in November 2023. The market remains very polarized, between winners and losers. The positioning in the very high range continues to be a positive factor as does the implementation of not excessive price increases. Investors’ attention is aimed at understanding whether the expected US recovery in the second half of the year is a concrete hypothesis.”
