European Luxury Sector Lacks Earnings Momentum -- Market Talk
Dow Jones
Aug 11
0839 GMT - European luxury companies reported mixed results during the second quarter, with a lack of earnings momentum, RBC Capital Markets analysts say in a note. Furthermore, brands are exposed to U.S. tariffs risk, although it will be less severe than initially feared, they add. The third quarter could point to a sequential improvement in trends, helped by an easier comparison base, the analysts say. "Without inflexion in underlying demand, we struggle to see how the sector can sustainably work," they say. RBC Capital Markets prefers Burberry, LVMH and Hermes, while it remains cautious on Swatch Group. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
August 11, 2025 04:39 ET (08:39 GMT)
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