Last week was not an easy one for luxury stocks


Last week was not an easy one for luxury stocks. As we can see from our chart investors in luxury companies suffered from widespread losses, which spared only a handful of names.

In the core segments of the luxury universe retracements in the 1%-2% order of magnitude were common while the biggest losses were recorded in the auto sector.

Ferrari did provide again a notable exception as it retains the top spot as the most brilliant luxury stock in 2019. Last week a barrage of less than stellar economic news hit investors, among them a decline of -0,8% in January German industrial production, while consensus forecast saw a rise of around  +0,5%, a 20% decline in February Chinese exports and basically zero jobs added in the same month in the US. Some of these figures can be explained by contingent reasons like the sub-arctic weather that plagued the North American continent recently. Undoubtedly though we are facing a real economic slowdown, after a robust stock rally in the first 2 months of the year.

It is wise to be reminded that luxury stocks are strongly cyclical and of top of that they already gifted investors with excellent returns in the early weeks of 2019, returns vastly above their respective benchmarks. Some weak spots though are starting to emerge, particularly in the auto sector (as we mentioned with the notable exception of Ferrari).

German giants went through a very negative week, in this case losses vastly exceeded the local market as a whole, due to the dismal German data we mentioned above. In a few weeks, once earnings season kicks in, investors will have a clearer picture.

Needless to say bottom lines strongly beating expectations will be more than welcome, particularly in a year like this, so far best described by the abundant supply of guidance cuts. In the meantime it is likely we entered a phase where a higher degree of selectivity would be advisable.

Azienda Performance YTDBorsa
Moncler 22.92%Milano
Estee Lauder 20.30%New York
Christian Dior18.96%Parigi
Tiffany18.68%New York
Ralph Lauren18.48%New York
LVMH 18.42%Parigi
Capri/Michael Kors16.80%New York
Hermes 16.67%Parigi
Brunello Cucinelli15.81%Milano
Richemont 13.84%Zurigo
Porsche 10.50%Francoforte
Tapestry/Coach-0.27%New York
Prada-1.55%Hong Kong
Luxottica -10.29%Milano
Tesla -13,9%%New York

Our editorial staff includes people with different professional backgrounds who share a passion for writing and who want to create and develop a dialogue with their readers and with the world.

Related Posts

The most negative week for the luxuy sector in 2019

The previous week marked probably the most negative for the luxuy sector in 2019. This segment of the market was significantly impacted by the return of the  fears surrounding the global economy. Triggering the sell-off on Friday 22nd  (Monday 25thin Asia) were worse than expected European data particularly in France and Germany

Top Five Luxurious European City Breaks

If you’re thinking of getting away for a bit, a city break is ideal. But just because it’s a city break, doesn’t mean it shouldn’t be luxurious. With British Airways recently launching a luxury sale, we’ve decided to compile a list of the best luxurious places you can visit for a city break below.

FIRST SUPERYACHT RIVA 50 MT M/Y “RACE” LAUNCHED: the legend enters a new dimension

The new flagship took to the water in an emotional private ceremony held in the Riva Superyachts Division shipyard in Ancona A 50-meter-long dream is now a yacht of boundless beauty. Named “Race” byher owner, she was the star of a theatrical launch at the Riva Superyachts Division shipyard in Ancona.