Luxury stocks tumbled on Monday as analysts warned of a deteriorating demand outlook, particularly among high-spending Chinese consumers.
"I think most people were hoping things would improve in the second half of the year — no sign of that happening at all at the moment," Kepler Cheuvreux's Jon Cox told CNBC on Monday.LONDON — European luxury stocks tumbled on Monday as analysts warned of a deteriorating demand outlook, particularly among high-spending Chinese consumers.index by midday, down 4%, after analysts at Bank of America downgraded the stock to "underperform" from "buy.
"With the only sector support fading — the Chinese consumer — all nationalities are now under pressure," they added, describing luxury consumers as "all shopped out" and Chinese domestic and travel demand as having "deteriorated." Across European luxury firms, they expect a 1% revenue decline in 2024.dropped nearly 3% Monday following its own downgrade from the BofA Securities analysts, who slashed their target price on the stock to 475p from 700p.