Luxury stocks have decreased in value following Chanel's results, suggesting potential challenges in the future.

Reported 6 months ago

Luxury stocks in Europe experienced a decline after Chanel indicated tougher times ahead for the industry, despite reporting double-digit growth in sales and profit for 2023. The cautionary outlook from Chanel's global CFO led to a significant drop in the Euro Stoxx Luxury 10 Index, with brands like Hermes International, Kering, LVMH Moet Hennessy Louis Vuitton SA, and Richemont seeing declines. However, beauty product maker L’Oreal SA saw a rise in its shares due to strong growth in its fragrance and beauty division. Analysts noted that Chanel's operating income was impacted by increased marketing spending, reflecting a slowdown in growth in line with the sector.

Source: YAHOO

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