Even Hermès Can't Outrun Luxury's Slowing Demand [Yahoo! Finance]
LVMH-MOET H/L/V UNSP/ADR (LVMUY)
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Source: Yahoo! Finance
“The reality is that luxury demand is not particularly strong these days,” said Bernstein analyst Luca Solca, pointing to a combination of weakening Chinese consumption and geopolitical disruption that is testing the sector's long-held assumptions. More from WWD Kering Announces Investment in Chinese Fashion Group Icicle Kering Aims to Double Profitability 'Mid-term' as Part of Strategic Roadmap China Export Slowdown Coincides With Reported Pressure on Maersk, MSC Over Panama Ports For Hermès , he added, the challenge could soon be more structural. “We may be getting closer to a time when they need to pull a rabbit out of the hat, when they need to launch something new, when they need to excite consumers again,” Solca said. The French house, long defined by its tightly controlled supply and reliance on a handful of iconic leather goods, is now facing a more complex backdrop. A slowdown in China — the industry's most important growth engine for more than a decade — combine
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