“We did feel we were quite close to the bottom and that’s normally the time to buy,” said Piral Dadhania, an analyst at RBC Capital Markets. “What surprised us and caught us offside a little bit is the fact that the China stimulus came and it had a very, very positive impact on share prices.”
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.
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.
