23 Hrs
Source:
الاقتصادية
Luxury stocks trade at fast fashion prices
The luxury goods market is facing significant challenges amid a decline in global demand, leading to a drop in the shares of companies like LVMH and Prada to levels below those of fast-fashion brands such as Zara and H&M. Global sales of luxury goods have not seen genuine growth over the past three years, amid concerns that the decline in profits could represent a long-term structural shift. This reflects the erosion of Chinese wealth due to falling real estate prices and declining household savings, as well as pressures on consumers in Europe and the United States caused by inflation and rising borrowing costs. Major brands are moving towards options such as price reductions or expanding to broader income segments, as the allure of brand names alone is no longer sufficient to sustain their market valuations.
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