Luxury has also downsized on the stock market, where sales’ trends and a gray future outlook are clouding stock prices. Two weeks ago LVMH dropped out of the top 5 Big Cap stocks in Paris. As of June 20, Kering will no longer be part of the Euro Stoxx 50 index. Patrizio Bertelli, meanwhile, dismissed the possibility of a second Prada listing in Milan: “It doesn’t make sense”.
Downsized luxury industry
The market is dealing with weakening demand in China, the U.S. and Trade War concerns. Many stocks in the sector are losing value. One of them is Kering: the price of shares has fallen to its lowest since 2016, with a loss of 28% since the beginning of this year and 47% since last June. In contrast to Rheinmetall (a German armaments company) stock, which since the Russian invasion of Ukraine in February 2022 to date has gained about 1,800%. That is why Stoxx has decided that, as of June 20, Rheinmetall stock will replace Kering in the Euro stoxx 50 index, a barometer of major eurozone stocks, Milano Finanza reports.
Related financial operations cool down
The news of Kering’s downgrade comes two weeks after the one concerning LVMH, which lost its place among the top five most capitalized listed companies in Europe. Prada, despite the purchase of Versace, has also abandoned, at least for now, the idea of a possible second listing in Milan, after the one in Hong Kong. Patrizio Bertelli, who with his wife Miuccia Prada runs the group, said a second listing “doesn’t make sense”. The opportunity is becoming increasingly distant “with the international situation we are experiencing… As long as we don’t get our act together in Europe, we will be in trouble”, she told Family Business Forum.
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