PARIS (Reuters) – Shares in European luxury goods companies were among the worst performers on Thursday in a broader stock market downturn, with traders and analysts citing persistent concerns over a slowdown in China.
Kering <PRTP.PA> shares, which hit a record high of 522.40 euros in July, were down 5.8 percent at 435.70 euros.
Kering’s French rival LVMH <LVMH.PA>, whose shares also hit a record high in May and which reports third-quarter revenue next week, were down 3.7 percent while Burberry <BRBY.L> fell 4.3 percent.
“We expect further solid momentum in the luxury sector in coming years, driven by the increasing size of the middle class and affluent clienteles in China, the appetite of millennials for luxury brands, especially in Asia and China and the strong potential of e-commerce in a more digital world,” brokerage Bryan Garnier wrote in a research note.
“Some slowdown is nevertheless likely in coming quarters given challenging comparison bases and uncertainty in China, even though companies have noted no sudden break in the trend in recent months,” added Bryan Garnier.
(Reporting by Sudip Kar-Gupta, Danilo Masoni and Blandine Henault; editing by Jason Neely)