In a declining market, the luxury sector is lagging behind this Friday, Kering (-3.37% to 227.95 euros) bringing up the rear of the CAC 40 index. LVMH lost 1.59% to 625.20 euros while Hermès fell by 1.35% to 2,270 euros. These three heavyweights on the Parisian coast are penalized by manufacturing activity in China which has disappointed investors. The manufacturing PMI index contracted by one point in December, to 50.5 points compared to 51.5 points in November. The market expected an increase to 51.7 points for the past month.
The Chinese economy, the second largest in the world, remains fragile, between consumption which is struggling to restart, serious trade tensions with the United States and an acute real estate crisis.
“Overall sales were held back by falling export orders. Employment levels also fell as business optimism weakened,” according to the findings of the Caixin-S&P Global survey on manufacturing activity in China.
In December 2024, luxury stocks were pulling the markets upwards thanks to the prospect of new stimulus measures in China and a favorable rating from RBC on the sector.
Handicapped by Gucci's poor results, Kering lost 39.21% over the year 2024 while LVMH and L'Oréal lost 12.10% and 23.31% respectively.
Only Hermès managed to do well, gaining 21.75% thanks to growth much higher than that of its competitors.
source: AOF
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