European luxury stocks fall as US tariffs stoke economic revival worries

European luxury companies drop on worries over economic revival in 2025

STOXX Europe Luxury 10 index STXLUXP slips 2.6% to lowest since January 20

Ferragamo SFER.MI slumps 19%; Kering PRTP.PA, Richemont CFR.S and Burberry BRBY.L lose 4.4%, 4.9% and 5%, respectively

Hermes HRMS.PA, LVMH LVMH.PA, Moncler MONC.MI and Swatch Group UHR.S shed between 2%-3.9%

Bernstein SG analyst Luca Solca says, "Market is having second thoughts about the probability of a macro-economic revival in 2025"

Adds, "The fear is that (U.S.) import duties will fuel inflation and inflation will delay interest rate cuts"

Zuercher Kantonalbank's Patrik Schwendimann says, "Luxury sector has one of the highest exposure to China. Imports to China slumped 8.4% y/y in January-February combined. This is a bad sign for the Chinese economy"

Adds, "USD is weak and euro is strong. The luxury sector is one of the most sensitive sector regarding currency movements because the production base is in Europe and sales are done predominantly in USD and USD-related currencies"