Shares in luxury brands shine, H&M falls
We’ve seen stellar gains for luxury stocks Kering and LVMH, but why are fast fashion retailer H&M’s shares sinking? IGTV’s @AngelineOng checks out the stock action.
(Video Transcript)
Rising share prices for Hermès, Kering
Some respite for luxury stocks are seeing Hermès and Kering gain ground. To show you Hermès first, because Hermès is one of the key stocks that many analysts in the luxury sector watch. There is a saying that if you have been bought Hermès or you're buying Hermès, you're not up and coming: you have arrived. And it is up 2.2%.
Kering is also another interesting one that is gaining ground at this session. It is currently up some 2%. Let me just check to see. It's now up more than 2.8%, really. And all the gains are on the luxury stocks like Kering and Hermès are coming after better-than-expected economic data from China.
Don't forget, we had quite a few months of weak data out of China, which suggested that perhaps the world's second-biggest economy and consumer of luxury goods as well, a big consumer, especially with its visitors to Europe and the US, its consumption was faltering. But there are some glimmers of hope. And it seems like there are now signs that the economy there is starting to gather some steam
H&M is less fortunate
Hennes & Mauritz (H&M), just touching on retail, while we are talking about this, though, shed 4% after reporting flat sales in its most recent quarter, lagging expectations, too, as the fashion group struggles to attract customers as many consumers are now starting to buckle under the cost of living crisis.
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