Digitization risk for the luxury sector, in particular for Moncler and Prada according to a report by Morgan Stanley which identifies a risk precisely in online commerce. And it is expected that the clothing sector will suffer above all, followed by the footwear sector.
"More choice opens up to possible fragmentation", writes the investment bank in a report which sees a general slowdown in growth and greater cyclicality as the "new normal" for the sector. This, she points out, reduces visibility on brands. That's why Morgan Stanley downgraded Moncler stock to “equal-weight” from “overweight”, while the bearish cycle has even led to Prada and even Hugo Boss being judged "underweight", thus catching up with Swatch and Tod's. Confirmed at "equal-weight" Salvatore Ferragamo.
The stocks that remain favored by Morgan Stanley are LVMH and Richemont. The investment bank commented on Moncler as follows: “It is one of our favorite brands [...], we remain very confident in the strength of the brand and in a better performance than that of our competitors; but after the market has raised its earnings multiples and the stock is up 50% year-to-date, we think the stock market could get some breathing room in the coming months.” Although Prada, despite leather goods being better positioned than clothing (which in any case is worth 20% of revenues), “there has been a disappointing level of new product launches”concludes Morgan Stanley.
At Piazza Affari in mid-morning Moncler lost half a percentage point to 24,73 euros per share. Ferragamo did worse with -0,66% to 22,73 euros, while on the Hong Kong Stock Exchange Prada closed losing 0,76%.
