Luxury goods Q4 post view: globally reassuring view with some signs of improvement in MC
Luxury goods Q4 post view: globally reassuring view with some signs of
improvement in MC
Even if Q4 luxury groups’ sales growth (+7% in average after +7% in Q3) were mixed with positive but also negative surprises, we note that most managements felt some kind of normalisation not to say improvement from December in Mainland China which accounts for around 12% of group sales, a move that is confirmed in the first weeks of 2014. This trend, which needs to be amplified in the coming months, is almost the first positive news for the luxury goods sector. We favour LVMH (EUR168 FV), followed by Richemont (CHF107 FV), Kering (EUR178 FV) and Swatch (CHF672). We remain Neutral on Ferragamo (EUR23 FV) and Sell on Tod’s (EUR106 FV).