BofA Joins Growing Bearish Chorus on Troubled Luxury Sector
- LVMH, Kering shares fall as Bank of America cuts to neutral
- Analysts see muted luxury sector revenue growth into 2025
An Olympics-branded window display at a Louis Vuitton store in Paris.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
European luxury stocks slid further as Bank of America analysts became the latest to sound the alarm on the beleaguered sector, cutting their rating on industry bellwether LVMH to neutral and downgrading others.
“We now factor in a more prolonged slowdown in luxury sector revenue growth, which will likely translate into further margin pressure,” Bank of America analysts led by Ashley Wallace wrote in a note, adding that this is likely to continue into the second half of this year and 2025.