Luxury trends in the past three months have been worse than expected due largely to Chinese consumers spending turning negative, says JP Morgan.
No one was immune, including the most defensive and highest quality players, it adds and little respite is predicted for the Christmas run-in, though US demand might rally a little post-election.
As well as weak sales, investors need to watch profitability as flat sales eat into profit margins.
Burberry Group PLC (LSE:BRBY) is on alert ahead of its results this week and into the first half of 2025 though outlooks across the sector have been reduced by low to mid single digits.
Prada is the exception due to the accelerating momentum at Miu Miu, the resilience of the Prada brand and an ongoing margin expansion story, otherwise, for the rest of the sector it's jewellery-encrusted tin hat time.
Shares in Burberry today were down 6% at 730.8p after a run-up on Moncler bid speculation.