Weak dollar hurting tourists' luxury spend, Berenberg says

Brunello Cucinelli SpA

29/07/2025 06:50

** Berenberg says it saw forex headwinds for luxury companies' H1 earnings, in addition to other pain points for sector

** Adds, "Both we and the market underestimated the effects of USD weakness – not just translation effects but also transaction effects in the form of weaker tourist spend"

** Expects tourist spending, which accounts for 35% of global luxury spend, to remain a drag at least till Q3

** Notes continued weakness among Chinese consumers, rebounding spend by Americans

** Flags absolute luxury outperforming aspirational and positive surprise in wholesale

** Brunello Cucinelli BCU.MI, Hermes HRMS.PA remain brokerage's top picks; Kering PRTP.PA, Swatch LVMH.PA its least preferred

 (Reporting by Anna Pruchnicka)

 ((anna.pruchnicka@tr.com))