(Boursier.com) — The luxury industry on the stock market remains under surveillance in Paris, likeHermes which stagnates at 1,937 euros this Wednesday. In addition to the still strong fears about the state of health of the Chinese economy, those about a new potential health crisis are also worrying the markets, while the country remains key to the future of the sector…
The recovery of luxury goods companies at the start of the year in the wake of the deconfinements stopped in the face of signs of a slowdown in demand which intervened quickly… This weakness fuels the concern that the market for bags handbags and high-end scarves are ultimately not immune to the slowdown in economic growth and the pressure exerted on consumers by high inflation, detail HSBC analysts who believe that the expansion of margins could also be more moderate from now on: “with savings evaporating and inflation now hitting consumers’ budgets, brands will have to be much more reasonable in the way they raise their prices, because consumers have it will be harder to digest these price increases.”
A normalization of growth in 2024 has already affected the valuations of the sector, also underlines the broker who is targeting a price of 1,900 euros (‘keep’), while Bernstein for his part maintains his recommendation of ‘market performance’ on Hermès, but with a target adjusted downward to 1,994 euros.
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