A week of dispersion


The last 5 trading days were overall neutral for luxury stocks, even if quite a few things happened on the market. Equities as a whole closed little changed globally: the S&P 500 declined a bit while the European Stoxx 600 managed to edge a tiny bit higher. Asia finished almost unchanged recouping most of the losses suffered through the earlier part of the week.

The dovish statements coming from the New York Federal Reserve President definitely did help boosting investors risk appetite. In terms of the luxury segment 11 out of the 20 names in our portfolio scored some additional gains while 9 finished in the red.

As we mentioned though some really positive news hit the markets, the story of the week was undoubtedly Burberry, whose stock locked in the best daily gains in more than a decade. At some point intra-day gains pushed through the +19% threshold. The company was in fact riding high on the wave of  good sales figures shown by the new Riccardo Tisci collection. This fantastic spike pushed Burberry among the top luxury names in terms of YTD in 2019.

A quick glance at our draw show us also how the rotation toward some of the cheapest and so far lagging names in the space is still going on, with most of the weekly losses concentrated in the mid part of our group.

This week will see the kickoff of the most intense phase of earnings season, with the bellwether LVMH reporting on Wednesday July 24th.  Unsurprisingly the data coming from the French titan will offer a very important clue to the true state of the sector. Coming out with strong numbers is turning more and more into an absolute must in such an uncertain global environment. On July 24thanother big name will report  quarterly figures, Tesla whose stock went through a massive rally (+44%) from the June through.

Azienda Performance YTDBorsa 
LVMH 51.56%Parigiup
Estee Lauder 46.68%New Yorkup
Christian Dior45.37%Parigiup
Richemont 35.77%Zurigoup
Moncler 32.07%Milanodown
Hermes 31.18%Parigidown
Tifffany15.10%New Yorkdown
Porsche 15.07%Francofortedown
Ralph Lauren8.34%New Yorkdown
Brunello Cucinelli0.83%Milanodown
Tod's-1.36%Milano down
Prada-1.94%Hong Kongup
Capri/Michael Kors-4.19%New Yorkup
Tapestry/Coach-10.22%New Yorkdown
Tesla -22.42%New Yorkup

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