The Big Bet on Luxury Stocks Stumbles on Inflation, China Woes
- Richemont warned it’s seeing effects of inflation in Europe
- Europe luxury stocks lost $180 billion in value in two months
A Cartier concession in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Problems are stacking up for Europe’s hottest sector.
A warning from the chairman of Cartier-owner Richemont that stubborn inflation was starting to affect demand in Europe prompted a swoon in luxury stocks last week. That downbeat message added to a string of worrying economic signals from China and signs of softer trends in the US.