Shares of high-luxury producers Hermes (RMS.FR) loses as much as 7% today, after Bloomberg reported that slowing demand in China pressured LVMH-owned Tiffany to scale back its 'flagship' luxury store in Shanghai. We can see that so called high-luxury stocks are pressured today, with Paris-based Hermes leading the declines.
Brunello Cucinelli, and LVMH (MR.FR) are following the downward move, however Kering, Hugo Boss and Moncler are less volatile today. Investor hoped that demand for high-end luxury goods will be stable and not fragile to macro concerns and weaker consumer demand. Investors fear that this thesis may be tested. Stifel analysts lowered business perspectives for Richemont. Even Ferrari (RACE.IT) loses 2% today, despite not any significant news.
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Hermes share price erased almost all year-to-date gains, dropping below the 71.6 Fibonacci support zone at 1971 EUR per share. The test of 1840 EUR level may not be excluded in a near term.
Source: xStation5
