China’s Slowdown Is Taking a Rising Toll on European Profits
- Hugo Boss, LVMH, ABB are among those feeling the impact
- Lower profits threatens share valuations, production
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From luxury brands to car makers, European companies are taking a hit from China’s slowdown, and more trouble is coming for businesses heavily reliant on demand in the Asian economic giant.
Hugo Boss AG, Burberry Group Plc, and Daimler Truck Holding AG are among the high-profile names whose bottom line has been hurt by customers there turning more cautious. LVMH joined the growing list late Tuesday, reporting that sales in the region that includes China dropped 14% in the second quarter.