LIVE MARKETS-Luxury's fourth quarter false dawn
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LUXURY'S FOURTH QUARTER FALSE DAWN
One of the key themes from Europe's fourth quarter earnings season was signs that the bloc's luxury sector might be coming back to life after a disappointing year, but the recovery might have stalled in Q1, according to JPMorgan.
"Our analysis ... suggests more muted trends for the sector since the beginning of the year, with notably a largely broad-based step down in consumer engagement in February," JPM strategists write.
"This is also consistent with our view ... that Q1 25 will show no further improvement vs Q4, but rather in some cases some sequential growth moderation."
Q4 results from across the sector were mostly positive, from high-end Hermes HRMS.PA, to turnaround play Burberry BRBY.L.
But JPM's analysis highlights Burberry, along with Kering's PRTP.PA Gucci, as having had "particularly soft performances" this quarter. They have placed both companies on "negative catalyst watch".
(Samuel Indyk)
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