|Bid||2,094.00 x 0|
|Ask||2,095.00 x 0|
|Day's range||2,087.00 - 2,137.00|
|52-week range||1,678.00 - 2,362.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||24.24|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg Opinion) -- For a while there, the major luxury companies appeared to be impervious to hard times in Asia. Even as prolonged unrest in Hong Kong hurt sales, and trade talks between the U.S. and China ground on, their stocks kept climbing. That changed this week as fears grow about the spread of a deadly virus in China.With the death toll reaching 25 on Friday, and China restricting travel for 40 million people on the eve of Lunar New Year, the question of what it all means for demand for high-end watches and handbags is obviously of minor concern. Yet it’s an unwanted reminder of just how dependent the industry is on Chinese consumers. Shoppers from the world’s most populous nation, be they in Shanghai, Singapore or San Francisco, probably accounted for about 35% of global luxury goods sales last year, according to Bain & Co. and Altagamma. What’s more, they generated the lion’s share — 90% — of all growth. There’s no reason to think they won’t be just as crucial to the sector’s performance this year too. One analyst, Flavio Cereda at Jefferies, says he expects the bulk of his estimated 5% sales growth (excluding currency movements) in 2020 global luxury sales to come from the Chinese, putting their expected impact at 4 percentage points. Some companies in particular, including Burberry Group Plc and watchmakers Swatch Group AG and Cartier-owner Richemont, have an exposure above the industry average. It’s too early to say what will be the impact of this new coronavirus that’s gripping China as hundreds of millions of people travel for the Lunar New Year — traditionally a time when revelers spend on goods from the top luxury brands. On Friday, the World Health Organization stopped short of calling it a global health emergency. After first appearing in the central Chinese city of Wuhan, it has spread to locations including Singapore, Hong Kong, Thailand and the U.S. Chinese authorities have been working to revise or cancel planned holiday activities in an attempt to stop any further spreading. Starting on Saturday, Disneyland Shanghai is being closed temporarily.If the crisis intensifies, it could become more problematic. People wanting to avoid the risk of catching the virus will likely curtail anything but the most necessary travel, and avoid crowded areas, with shopping malls among them. That will hurt companies that managed to make up some lost Hong Kong sales at their stores in mainland China.It will also hit sales to Chinese tourists the world over. Although Hong Kong and Macau, which has canceled all of its Lunar New Year festivities, remain the most popular destination for Chinese travelers, Japan, the U.S., Italy and France are also high on their itineraries. Chinese tourists are the highest spenders across most of Europe, according to payments provider Planet, typically splashing out for goods worth about four times that of domestic shoppers. In the U.S., a number of retailers, including diamond jewelry specialist Tiffany & Co., have already said they’ve been impacted by having fewer tourists due to the dollar’s strength.Even though Chinese shoppers have recently been spending more at home, as excursions to Hong Kong fall, they still make the bulk of their purchases when they travel, a time when people are more inclined to blow the budget on impulse buys. Any slowdown in international travel would also hit demand in duty-free shops, including luxury behemoth LVMH’s DFS business and Dufry AG, in which Richemont has a 5% stake.There’s also a broader risk to spending at home and abroad. Luxury thrives when consumers feel happy and wealthy, not when people fears for their health, and that of friends and family. And if the virus has any knock-on effects on the Chinese economy, that would cause ripple effects elsewhere as well. The situation is bringing back memories from 17 years ago when the severe acute respiratory syndrome, or SARS, killed about 800 people. At the time, Chinese shoppers probably accounted for about 10-15% of global luxury sales, much less than today. So investors will be watching what the impact will be on the big groups. This week, LVMH, Kering SA, Burberry, Richemont and Swatch all fell, as well as U.S. names Tapestry Inc. and Michael Kors-owner Capri Holdings Ltd., all underperforming their respective markets. Some recovered on Friday. Yet valuations remain elevated. That means there’s little comfort as everyone tries to learn more about just what this virus will bring. To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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* European shares little changed * DAX flat after hitting new record peak * Worries over spreading Coronavirus ease * Italian banks fall on fresh political uncertainty * S&P 500, Nasdaq aim for record on IBM earnings Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni.
* European shares little changed * DAX flat after hitting new record peak * Worries over spreading Coronavirus ease * Italian banks fall on fresh political uncertainty * S&P 500, Nasdaq aim for record on IBM earnings Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Barclays anticipates better days ahead for earnings in 2020 rather than the actual Q4 numbers and overall, it says you shouldn't expect much of a boost in share prices from the results as the U-shaped recovery has been largely priced in.
* European shares little changed * DAX flat after hitting new record peak * Worries over spreading Coronavirus ease * Italian banks fall on fresh political uncertainty * S&P 500, Nasdaq aim for record on IBM earnings Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: email@example.com PONZI MARKET? In a note titled, "Global Central Banks Fuelling a Ponzi Market a Ponzi Market", Guggenheim Investments CIO Scott Minerd says the only reason investors keep adding to risk is the fear that prices will be higher tomorrow.
* European shares little changed after higher open higher * DAX flat after hitting new record peak * Worries over spreading Coronavirus ease * Italian banks fall on fresh political uncertainty * S&P 500, Nasdaq aim for record on IBM earnings Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: firstname.lastname@example.org TRADE TRUCE: MUCH ADO ABOUT NOTHING (1429 GMT) How would you react if you were told that the trade truce between U.S. and China would at best boost global trade for this year by just $20 billion (that's much lesser than how much Apple grew its revenue last year)?
Luxury fashion label Burberry upgraded its full-year sales forecast on Wednesday as demand for Riccardo Tisci's new collections in Europe and mainland China offset a slump in Hong Kong. Burberry, famed for its trenchcoats and check scarves, said its sales in Hong Kong halved in the 13 weeks to Dec. 28, its third quarter, as large scale demonstrations in the territory since June have deterred visitors from mainland China. Chinese luxury shoppers are a major focus for Burberry and a recent outbreak of a new coronavirus in China, which has killed nine and infected 440 so far, poses another risk to the luxury sector if travel is affected.
* European shares open higher; DAX hits new record peak * Worries over spreading Coronavirus ease * Italian banks fall on fresh political uncertainty * S&P 500, Nasdaq futures also touch new record high * Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Risks of an early election handing power to right-wing leader Matteo Salvini look small and some investors see the drop in Italian assets as a possible buying opportunity.
* European shares open higher; DAX hits new record peak * Worries over spreading Coronavirus ease * Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. 2 (1038 GMT) One hundred billion dollars (purposely spelled out) -- that's what Tesla is expected to be worth when U.S. markets open later today, dethroning car behemoth Volkswagen to become the world's second-biggest automaker by market cap. "The rise in the value of Tesla tells us little about the health of the car market (modest in the U.S., weaker in Germany and China), but a lot about investor behaviour and the state of banking," says Mike O'Sullivan, author and ex-CIO at Credit Suisse IWM.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Burberry Group Plc became the latest victim of the Hong Kong protests as sales in that market dropped by half over the Christmas quarter, while the spread of a new viral disease in Asia risks dimming the outlook further.The stock fell as much as 4.1% even after the company raised its forecast for full-year sales growth to a low single-digit percentage.Asian demand is crucial to the British maker of $2,000 trenchcoats and $470 scarves, which gets about 40% of its sales from Chinese shoppers. After political protests in Hong Kong led to store closures and weighed on tourism for months, the luxury industry is now bracing for the impact of a lung ailment that first appeared in China in December. Hong Kong reported a suspected first case of the disease today.The World Health Organization is set to decide Wednesday whether to declare the virus an international public health emergency, just before millions of people prepare to travel for the Chinese Lunar New Year holiday. That could weigh on tourism and consumption on the mainland, where growth has been compensating for the slump in Hong Kong. Burberry is preparing to showcase its autumn-winter collection in Shanghai for this first time in April.Retail growth came in just ahead of the consensus for the company’s fiscal third quarter, which ran through December. The stock has been strong recently, gaining 27% in 2019.Revenue in Hong Kong slumped in the period as the protests led to a drop in Chinese tourists. Sales on the mainland rose more than 10%. Burberry said it’s trying to lower rents in Hong Kong to lower costs there.While Burberry’s global growth has improved, it’s still lagging peers nearly two years after the head designer, Riccardo Tisci, was hired and about three years since Chief Executive Officer Marco Gobbetti joined. Both came from top luxury rival LVMH.Revenue KeyThe company is targeting improvements in profitability from next year, yet top-line growth is the priority at this point, Chief Financial Officer Julie Brown told reporters on a conference call.“We’ve got the cost base under tight control,” Brown said. “We’re in a position to leverage the business. That said, we will always prioritize investment. We believe the revenue growth is key at this stage.”A retooled aesthetic with new products, logos, and store decor is fueling interest at Burberry. New products made up three-quarters of the assortment. But with stores as far-flung as a boutique in Paris’s posh 8th district and an outlet mall in Dawsonville, Georgia, the transition to a new Burberry is taking time.“Brand heat is improving but we are unsure that it is strong enough to take market share from the sector winners,” wrote Piral Dadhania, an analyst at RBC. The company previously forecast flat sales this year.(Updates with details on Hong Kong, illness in third paragraph)\--With assistance from Albertina Torsoli.To contact the reporter on this story: Robert Williams in Paris at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas Mulier, Marthe FourcadeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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* Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni.
* Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Expectations tech could get support from IBM results and the update from ASML didn't prove fully true however. The index is up just 0.2%, weighed down by a 2% slide in Prosus after e-commerce group Naspers sold a stake in its subsidiary, while ASML is also down as its Q1 2020 sales guidance disappointed.
European luxury stocks slumped across the board on Tuesday on fears that the coronavirus virus outbreak in China could hurt sales of high-end brands that had managed to weather months of protests in Hong Kong. Chinese shoppers account for 35% of global luxury goods sales and 90% of last year's growth in the market, according to consultancy Bain & Company, which produces closely followed forecasts for the sector. Such statistics illustrate the damage that could be done to luxury goods companies if health fears deter Chinese consumers from travelling or going shopping at home.
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According to one top luxury executive, the sector can’t sustain its current rate of growth — and might need to consolidate further.
Marco Gobbetti became the CEO of Burberry Group plc (LON:BRBY) in 2017. This analysis aims first to contrast CEO...
(Bloomberg Opinion) -- Billionaire Mike Ashley has unpacked a haul of good news from his giant Sports Direct bag, the first investors in the sportswear-to-statement jacket empire have enjoyed for a while.After a dismal showing in July — when Sports Direct International Plc first delayed its full-year earnings statement, and then accompanied it with news it faced a surprise tax bill in Belgium potentially worth 674 million euros ($750 million) — the bar for doing better was pretty low.But the group seems to be stabilizing after the tumultuous period in the wake of its acquisition of the troubled House of Fraser department store chain in August 2018.For now, Sports Direct hasn’t split out House of Fraser’s sales and profits. Instead, the storied British chain has been lumped in with the premium lifestyle division, which includes the upmarket Flannels boutiques. In the half year to Oct. 27, the unit made a loss on an underlying Ebitda basis of 5.6 million pounds, compared with a deficit of 29 million pounds in the year-earlier period.This implies House of Fraser’s losses shrunk noticeably. Tony Shiret at Whitman Howard estimates the loss at about 10 million pounds, compared with 31.5 million pounds previously.This all led Ashley to declare “green shoots of recovery” at the department store. More importantly, he also had good news for the outlook. The company now expects full-year underlying Ebitda of between 356.4 million pounds and 390.3 million pounds. That’s up by between 5% and 15% — the range the company has historically targeted — from 339.4 million pounds in the year to April 2019, excluding House of Fraser.Ashley also provided reassurance on the Belgian tax bill, saying that it won’t be such a big problem after all, and should not lead to a material charge. Finally, a 120 million-pound sale and leaseback for Sports Direct’s Shirebook campus has helped to halve net debt, which had been ratcheting up.The shares rose as much as 27%. But investors shouldn’t get too ahead of themselves. First of all, there is still work to do at House of Fraser. While the group will move forward with a number of stores under the Frasers banner — also the new name for Sports Direct — more outlets will close. Sports Direct must also convince the luxury brands to back his Frasers vision, although this should receive a boost from the Flannels offering. Brands such as Burberry Group Plc were much in evidence at Flannels’ new flagship on London’s Oxford Street.While much attention has focused on House of Fraser, it and Flannels are still a small part of the group. It is the core Sports Direct sportswear stores that drive the performance. Here sales, excluding acquisitions, fell 8.6%, as Sports Direct took the division upmarket. Revamped stores are performing well, and selling more expensive items, together with less discounting, is bolstering margins. But the group can’t let up the pace of these refurbishments. Ashley will have to convince the big sportswear brands, Nike Inc. and Adidas AG to supply it with their hottest sneakers, just at a time when Nike is becoming more choosey about who it sells to.And let’s not forget the risk of impulsive action from Ashley himself. The strategy of taking advantage of others’ misery by acquiring brands to sell in his stores is a sensible one. But the dangers of overstretch, as well as unconventional corporate governance moves, are ever present.Compared to this time last year, Sports Direct has things under more control. Investors will be looking out to see if the same can the same be said of its unpredictable founder.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.