(Boursier.com) — Luxury had a dark week on the Paris stock market, like the title LVMH which dropped 6%, while Kering (-5.5%) and Hermes (-3.5%) are also at half mast, while the compartment has paid the price for the latest statements from Johann Rupert, the president of Richemont. The owner of Cartier estimated that inflation was “starting to affect luxury demand in Europe”. The persistent rise in prices is even encouraging wealthy European consumers to reduce their purchases, according to the South African billionaire… The manager, who was speaking at the Swiss company’s annual meeting in Geneva, said having “noticed difficulties”. European households are spending a higher percentage of their income on basic necessities than they have over the past decade.
The company had already warned in July that demand in the United States and China, two of the largest markets for luxury goods, was “starting to weaken”… J. Rupert said he expected the disruptions to persist. : “we cannot expect that after 10 years of excess, we will return to normal in a year or two. It will take longer.”
Among the latest opinions from brokers, we note a little more caution also due to the economic slowdown which is confirmed on both sides of the Atlantic. Citi has just reduced its target from 960 to 882 euros, while still remaining a buy on the LVMH file.
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