Free Trial

Luxury Retailers & China Exposure comes in focus

  • Luxury retailers fuelled by Kering (NR, A) {KER FP Equity -14%} are struggling this morning - € lines for Kering are +4-6bps wider, £ lines +1.
  • It now sees 1Q sales to decline by -10%yoy (market was at -1% last week) - driven by Gucci (-20%yoy, market was at -6%) with particular weakness in APAC.
  • Kering shares have been halted, LVMH (Aa3, AA-) {MC FP Equity -3%} € lines +2 wider, Richemont (NR, A+) {CFR SW Equity -3.7%} unch, Burberry (Baa2, NR) {BRBY LN Equity -4.5%} £25's unch.
  • We'd be wary of names including luxury beauty retailers further down the rating ladder were China continues to be topical for earnings (L'Oreal as e.g.).
  • Coty isn't a direct comp. (& does have low exposure) but could be a mover given optimism baked in.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.