Stock market: should we despair as luxury stocks have been drifting since 2023?

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Long cherished on the stock market, luxury has been shunned by investors for almost three years, and the fall in prices of players in the sector seems to have no end. Chinese consumption is dragging down performance and weighing on stocks. Even if visibility remains reduced, there are reasons to hope.

Only Stellantis, with a drop of almost 55%, has done worse since the start of the year. But just after, luxury stocks showed the worst performances of the CAC 40 over the period, each showing a fall of just over 40%.

And it is not the content of the 3rd quarter publications which seems able to give new impetus to our French champions. Certainly, LVMH has regained organic growth, but it is still limited to only 1%. Hermès International still shows growth of 4.3%, but it is also the lowest recorded in six years. As for Kering, its flagship brand Gucci remains lagging behind and is seeking a solution with its new CEO. The sector, long pampered on the stock market, benefited from a catch-up effect at the end of Covid-19, fueled by the accumulation of household savings during confinements. The strong recovery of the American and Chinese economies has also fueled the outperformance of luxury groups, and…

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Machine-translated from French