{"id":83050,"date":"2023-11-10T11:58:17","date_gmt":"2023-11-10T16:58:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/richemont-stock-leads-declines-in-europes-luxury-sector-as-slower-growth-and-higher-interest-rates-hit-sales\/"},"modified":"2023-11-10T11:58:21","modified_gmt":"2023-11-10T16:58:21","slug":"richemont-stock-leads-declines-in-europes-luxury-sector-as-slower-growth-and-higher-interest-rates-hit-sales","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=83050","title":{"rendered":"Richemont stock leads declines in Europe\u2019s luxury sector as slower growth and higher interest rates hit sales"},"content":{"rendered":"
\n

Shares in Richemont led Europe\u2019s luxury goods sector lower on Friday, after the Swiss-based group said geopolitical angst and a weakening European economy had delivered lower than expected first-half profits.<\/p>\n

Zurich-listed Richemont
\n CFR,
\n -5.20%<\/bg-quote>,<\/span>
\n whose brands include Cartier jewellery and Roger Dubuis watches, revealed sales in the six months to the end of September rose by 6% to \u20ac10.2 billion ($10.9 billion), less than the \u20ac10.3 billion expected by analysts, while profit of \u20ac1.51 billion was below the \u20ac2.17 billion forecast.<\/p>\n

\n

Soft demand in Europe did most of the damage, with sales falling 1% in the second quarter, though the Americas rose 4% and Asia-Pacific was up 8%.<\/p>\n

\u201cThe period under review started strongly, beyond our expectations,\u201d said Johann Rupert, Richemont chairman. \u201cHowever, growth eased in the second quarter as inflationary pressure, slowing economic growth and geopolitical tensions began to affect customer sentiment.\u201d<\/p>\n

Richemont becomes the latest luxury goods group to warn that demand is slowing as the post-COVID bounce subsides and consumers struggle amid stuttering global economic growth and higher interest rates. <\/p>\n

Last month LVMH
\n MC,
\n -3.82%<\/bg-quote>,<\/span>
\n Europe\u2019s biggest luxury group, whose brands include Dior and Givenchy, said weakness in the U.S. had contributed to sales growth falling from 17% to 9% from the previous quarter.<\/p>\n

Richemont stock fell more than 5% on Friday, taking its losses over the last three months to 18%. LVMH shares, which in May hit a record high above \u20ac900, fell more than 3% to trade below \u20ac700. Luxury peers Kering
\n KER,
\n -3.33%<\/bg-quote>
\n and Hermes
\n RMS,
\n -1.56%<\/bg-quote>
\n lost 3.4% and 1.7% respectively.<\/p>\n

The weakness in luxury left the Paris CAC 40
\n FR:PX1
\n down 0.8%. Meanwhile, a poor performance from Wall Street the day before pushed Frankfurt\u2019s DAX
\n DX:DAX
\n down 0.6%, while London\u2019s FTSE 100
\n UK:UKX
\n shed 1.3%.<\/p>\n

The U.K. market\u2019s underperformance came as global economic growth concerns hurt miners and shares in Diageo
\n DGE,
\n -12.17%<\/bg-quote>,<\/span>
\n the global drinks company that owns Guinness and Johnnie Walker, slumped more than 15% on signs of weaker sales in South America.<\/p>\n

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, noted that the region \u201conly makes up a relatively small portion of\u00a0Diageo\u2019s whole, but the extent of declines means expectations have materially changed at the group level.\u201d\u00a0<\/p>\n

\u201cDiageo\u00a0has long been a favored steady-Eddie thanks to its seemingly impenetrable brand power and dividend paying ability, and there will now be concerns that the change in appetites could translate to other, larger markets,\u201d she added.<\/p>\n

Meanwhile, the euro
\n EURUSD,
\n -0.02%<\/bg-quote>
\n was up 0.1% to $$1.0695 and German 2-year bund yields
\n BX:TMBMKDE-02Y
\n rose 3.8 basis points to 3.050% after European Central Bank President Christine Lagarde told the Financial Times that the eurozone monetary guardian will not begin cutting rates for at least \u201cthe next couple of quarters\u201d as its strives to return inflation to its 2% target.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Richemont led Europe\u2019s luxury goods sector lower on Friday, after the Swiss-based group said geopolitical angst and a weakening European economy had delivered lower than expected first-half profits. Zurich-listed Richemont CFR, -5.20%, whose brands include Cartier jewellery and Roger Dubuis watches, revealed sales in the six months to the end of September rose […]<\/p>\n","protected":false},"author":1,"featured_media":83051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-83050","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nRichemont stock leads declines in Europe\u2019s luxury sector as slower growth and higher interest rates hit sales | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares in Richemont led Europe\u2019s luxury goods sector lower on Friday, after the Swiss-based group said geopolitical angst and a weakening European economy\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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