Americans keep spending more and more, but it seems like nothing can light a fire under Chinese shoppers.Estée Lauder cut its fiscal-year outlook Wednesday; Canada Goose Holdings ‘ revenue fell short of expectations in its latest quarter; and Yum China Holdings missed third-quarter revenue and sales estimates. All said, demand among Chinese consumers was still soft.
Many investors had hoped that China’s consumers would have shifted into overdrive by now, like U.S. shoppers did after exiting pandemic-era lockdowns. So far, however, China’s economic recovery has been sluggish and underwhelming. Andy Yeung, Yum China ‘s chief financial officer, said on a call with investors Tuesday that the company had seen softening demand in September and October.Yum China and Estée Lauder’s warnings are especially worrisome, as they were issued less than two weeks away from Singles Day. The unofficial shopping holiday has rapidly become the world’s biggest 24-hour online sale—bigger than Black Friday and Cyber Monday combined, according to Coresight Research.
“The big question, like last quarter, and the one before it, will be: ‘is this the final cut?,’” Bernstein analyst Callum Elliott wrote in a note to clients, referring to Estée Lauder’s guidance cut.
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Source: CNBC - 🏆 12. / 72 Read more »