Luxury goods stocks tumble as Deutsche Bank says they're no longer a slam dunk. Blame the U.S.

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Shares of LVMH, Hermès and Richemont are among the best-performing luxury goods stocks this year. Deutsche Bank smells trouble for the sector.

The world’s richest man might want to listen to what Deutsche Bank had to say about luxury goods profits on Tuesday: the U.S. consumer is turning into a problem.

“Key drivers of the strong sales performance have been the robust rebound in domestic China demand and more resilient growth in Europe . However, slowing to negative growth yoy [year over year] in the U.S. is a building concern, especially given signs of softening demand from more economically sensitive aspirational consumers,” said Deutsche Bank analyst Matt Garland, in a note to clients.

Shares of LVMH Moët Hennessy Louis Vuitton MC fell 3.5% in European trading on Tuesday. The Bulgari and Dior owner’s chairman and CEO is Bernard Arnault, whose wealth pile has increased by over $40.7 billion this year to $203 billion, making him the world’s richest, according to the Bloomberg Billionaire Index.The biggest losses were seen for Hermès International RMS , down 5.6% and Moncler MONC off 4.6%, while Swatch Group UHR was down 3.6%, Cie. Financière Richemont CFR fell 3.

 

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