Market Extra: Luxury goods losing sales luster as terror attacks deter shoppers

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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