Stocks including Birkin bag-maker Hermes International, Cartier-parent Richemont and France’s LVMH have all surged more than 15%, propelled by China’s pledge to step up stimulus. LVMH’s investment in designer outerwear label Moncler only added to the feel-good factor.
The narrative on European luxury-goods stocks has flipped in the space of a week.
Under pressure for most of the year due to a slowdown in Chinese demand, the sector has rebounded strongly over the past five days with a Goldman Sachs basket of luxury companies set to notch its best week since 2012.
