There is no China, Russia or emerging markets that hold. Even luxury has surrendered under the blows of pessimism about the economy. After yesterday's declines, Tod's is once again leading the declines of the Ftse Mib (-1,56%) with a drop of 5%, after being suspended on the downside, Luxottica drops 4,55% and Safilo collapses by 15%. with lots of downward suspension. The possible non-renewal of the Armani license weighs on the eyewear stock, but also an industrial plan that evidently does not please the markets (among the main points the strengthening of a balanced portfolio of high-potential brands, growth in emerging countries and a target of net sales growth at an average annual rate of 6-7%, with the greatest boost in the last two years of the plan). Collapse also for Salvatore Ferragamo (Ftse Italia All share) which falls by 15% (after being suspended for most of the morning) while the group is engaged in the road show in Singapore promoted by Borsa Italiana.
A sector that of luxury and fashion which, thanks to the exposure to emerging markets and a demand overall more resilient to the economic slowdown, had resisted the wave of sales that hit banks, raw materials and industry. In the last six months, the Ftse Mib has collapsed by 32%, the banking index and that of raw materials have both recorded a decline of 45% and the industry index by 34%. Meanwhile, including the declines of recent days, Luxottica has lost 18%, Tod's 23% and Ferragamo has gained 9% from the IPO price in June. The exception is Safilo which in the last six months left 52% on the field. Small consolation, the declines affect all of Europe. In Paris Ppr falls by 6%, Lvmh and Hermès by 4%.
In recent days, Prada's good results had brought attention back to the sector's ability to defy the crisis: in the first half of the year, the group's net profit rose on an annual basis by 74% and sales showed a + 22%, again on an annual basis, thanks above all to the good performance of the Chinese market. These results have contributed to confirming positive expectations for the whole sector, although after the summer the latest report from the Chamber of Fashion revised the forecasts for 2001 downwards, with the growth in turnover lowered to 4% from 8%.
