Rain of sales on luxury stocks. From Milan to Paris arriving as far as Hong Kong, the shares of global luxury giants travel in deep red with losses that in some cases are close to 4%.
A war report starting from Milan, where Salvatore Ferragamo (-2,56%) And Moncler (-1,69%) are placed at the bottom of the Ftse Mib, while also suffering Tod’s (-1,35%) And Brunello Cucinelli (-3%). Same music in Paris with the big names in French luxury who will add weight to the CaC 40: lvmh (-2,4%), Kering (-3,6%) Hermes (-2,2%). The red trail continues in London, where Burberry yields 3,78%, and falls towards Zurich with Richemont (-3,6%) And Swatch (-2,9%). In Hong Kong Prada it closed the session down 2%.
The global luxury sector is penalized by news from China on the spread of a type of coronavirus similar to Sars. Six dead, 291 infected, while experts from the Chinese National Health Commission confirmed that the virus can also be transmitted from man to man.
The outbreak comes just days before Chinese New Year (January 25), a holiday season in which Chinese consumers, who account for 35% of luxury sales, about two-thirds of which are outside China, travel, spend and buy.
"The fear of contracting the disease could reduce the propensity to travel - underlines Equita in a report - and impact on the spending mood in the region, as already reflected yesterday by sector stocks (down by 2-3%)".
All global luxury companies have exposure to China equal to 33-35% of turnover, except for Brunello Cucinelli (12%) and Burberry (about 40%).
“In 2003, exposure to Chinese consumers was lower (we estimate less than 10%) but today the control capacity of the health and airport authorities is probably greater”, Equita continues.
However, what is happening in China does not only influence fashion and luxury. Among the stocks most exposed to Beijing there are also stm(about 1/3 of turnover) which loses 1,9%, Brembo (12% of turnover) which yields 0,3%, Pirelli (approximately 10% of turnover) down by 1,32%.
