European luxury brands are in for tough winter after Q3 sales peak, HSBC says

Prada SpA

05/12/2022 10:13

** HSBC says "winter is finally coming" for European luxury
goods as it expects sales to slow down from Q4 and into 2023
    ** The broker forecasts laggard sector growth of about 7% in
2023, saying the strong Q3 sales were "as good as it gets" with
no underlying improvement expected before mid-2023
    ** It downgrades Burberry  BRBY.L  to "reduce" from "hold",
seeing its development strategy as underwhelming and conducive
of further underperformance
    ** It cuts Watches of Switzerland  WOSG.L  to "hold" from
"buy" after recent stock outperformance
    ** HSBC increases its target price on Hermes  HRMS.PA  to
1,570 euros ($1,656.5) from 1,500 euros, and Richemont  CFR.S 
to 130 Swiss francs ($139) from 127 francs (both rated "hold")
    ** It rates only Prada  1913.HK , Moncler  MONC.MI  and
Kering  PRTP.PA  as "buy" on "company specific reasons":
evidence of market share gains for Prada, quality of execution
for Moncler, and "mispriced" stock for diversifying Kering
($1 = 0.9478 euros)
($1 = 0.9348 Swiss francs)
 (Reporting by Alessandro Parodi and Alberto Chiumento)
 ((alessandro.parodi@thomsonreuters.com))