Waiting for more signals


After Easter break we once again turn our attention to of luxury stocks. The previous two weeks turned out a touch more volatile, as a matter of fact the 5 days preceding Easter Sunday were overall positive while the following 5 sessions saw a slight decline in luxury stocks prices.

The returns displayed recently were overall coherent with the shananigans of global equities, which saw up until a few days ago impressive strength. Actually the S&P 500 managed to close at a new historical high, while the last few days were definitely choppier, with remarkable declines showed by China.

Luxury finance

Corporate quarterly  results proved once again an important driver of performance differentials among our companies, as the earnings season reaches its own peak the trend appear set to intensify. Both Hermes and LVMH for instance posted +16% revenues growth and both companies figures were well received by investors, Hermes particularly is more and more turning into the quintessential luxury growth stock.

On the other hand Tesla kept on being pummeled by the markets, scoring last week the worst performance among the companies we track. Investors have still yet to go back to pouring money into this company, after quarterly results proved to be a massive disappointment.  German luxury car manufacturers are instead still on their recovery trajectory, buoyed by positive rotation dynamics.

A quick glimpse at our data also show how overall recently it was not a great time for Italian luxury names. Among them some are still getting plagued by endogenous problems while others are getting impacted by their mere being on the wrong side of rotation momentum.

All in all recent developments appear a bit murky and devoid of a coherent and linear direction. This is maybe hinting at slightly more cautious global investors, after the bull run of 2019, investors who are very likely waiting for a clearer picture to emerge from quarterly earnings and future guidances.

Azienda Performance YTDBorsa
LVMH 34.18%Parigi
Tiffany33.82%New York
Estee Lauder 32.59%New York
Christian Dior31.36%Parigi
Hermes 27.89%Parigi
Ralph Lauren26.80%New York
Moncler 25.30%Milano
Porsche 20.33%Francoforte
Richemont 18.73%Zurigo
Capri/Michael Kors17.80%New York
Brunello Cucinelli5.96%Milano
Tapestry/Coach-6.22%New York
Prada-13.34%Hong Kong
Tesla -29.34%New York

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