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CDI - Christian Dior SE News Story

€624 2.5  0.4%

Last Trade - 14/05/21

Consumer Cyclicals
Large Cap
Market Cap £96.95bn
Enterprise Value £142.34bn
Revenue £38.46bn
Position in Universe 8th / 850

BUZZ-European Luxury: Recovery in Mainland China not enough in Q2 - GS

Mon 27th April, 2020 3:19pm
** Goldman Sachs says European luxury brands' comments
suggest that rapid spend repatriation in Mainland China is not
fully offsetting a decline in tourist spending by Chinese
consumers due to coronavirus-related travel bans
    ** The broker says Q2 will show a 'material' deceleration
vs. Q1, expecting a decline in luxury sales of 70% in Q2 and of
30% for the full year
    ** GS also sees market cap weighted average inventory rising
by 16% in 2020 and falling by 5% in 2021 across the traditional
luxury peers                                           
    ** The broker adds larger European luxury goods names with
stronger momentum going into COVID-19 are outperforming peers as
Mainland China starts showing signs of recovery
    ** "Cities in the southern regions (e.g. Shenzhen and
Guangzhou) are experiencing a stronger recovery," the broker
    ** GS says LVMH's  LVMH.PA  Louis Vuitton and Dior
 DIOR.PA , Kering's  PRTP.PA  Gucci, and Moncler  MONC.MI  are
examples of brands which are outperforming in the recovery
    ** Kering, LVMH, and Moncler are GS's key picks and are all
rated "buy", with Kering also on the broker's "conviction list"
    ** The broker also says that store closures and social
distancing due to the novel coronavirus pandemic will act as a
catalyst to accelerate the shift to online stores

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