Andrea Felsted, Columnist

Luxury Stocks Are Heading to the Clearance Bin

LVMH and Hermes are still waiting for the consumer rebound from China.

Louis Vuitton in the Tsim Sha Tsui area of Hong Kong.

Photographer: Bloomberg/Bloomberg
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The best luxury brands rarely go on sale. Not so their share prices.

Valuations across the sector have tumbled on a deteriorating Chinese economy and sluggish US demand. But investors with a long-term view may be able to salvage something from the bursting of the bling bubble.