1221 GMT - Luxury goods companies face diverging trends in the upcoming earnings season, as most names in the sector grapple with a challenging environment, Stifel analysts write in a research note. After a postpandemic boom on luxury spending, sales in the sector slowed due to high inflation and rising interest rates that weighed on consumers. There seems to be limited scope for positive surprises in names such as LVMH Moet Hennessy Louis Vuitton and Richemont in the first quarter, Stifel says. "Some patience is required," they add, noting that momentum could improve in the second half of the year. As for companies in a turnaround process, challenges will remain. "We feel it is still too early to buy stocks like Kering, Burberry or Ferragamo," the analysts say. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
April 10, 2024 08:21 ET (12:21 GMT)
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