Market Extra: Luxury stocks mired in red after lackluster outlooks

Luxury stocks lost their shine Wednesday, with dour financial outlooks from Cartier’s parent company and Hermes International underscoring tough conditions for high-end retailers.

A collapse in demand in Asia and a weaker European tourism market are “the two major reasons why luxury has lost its lustre,” said Neil Wilson, markets analyst at ETX Capital, in a note.

Cie. Financière Richemont — home to Cartier, Montblanc and Piaget — on Wednesday said sales have softened throughout Europe, “particularly in France, due to a significantly lower level of tourist activity.” It warned that operating profit for the six months through September may drop around 45% from the previous year.

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