Luxury Stocks Fall as Chanel Hints at Tougher Times to Come
- Hermes, LVMH drop as Chanel’s operating margin takes a hit
- Sector index falls most in a month as Hermes, LVMH, Kering dip
The Chanel Cruise 2024/2025 fashion show in Marseille, France, on May 2.
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Luxury stocks took a hit in Europe Wednesday after Chanel warned that the industry is set for more difficult times and analysts said they see growing pressure on profit margins at the exclusive brand.
The Euro Stoxx Luxury 10 Index fell as much as 1.9%, the most in about a month, after privately owned Chanel Ltd. published 2023 financial results. While the famous fashion, cosmetics and jewelery house reported double-digit growth in sales and profit, attention homed in on the cautionary tone of its outlook.