Luxury, Goldman Sachs downscale 2019/20 growth forecast, while Savigny Luxury Index slumps

According to Goldman Sachs, in 2019-2020 two-year-period the luxury companies’ profits will increase: this is the good news. Conversely, the bad news, which strongly affected Milan Stock Exchange, is that financial analysts, working at the US bank, report that increase in profits, achieved by luxury fashion brands, will be lower than previously expected. Looking at figures, in 2019 growth forecast is going to be downscaled, from +7% down to +5%. Quite a downgrading, in other words. On the one hand, Kering and LVMH listings were not that turned upside down, at Paris Stock Exchange, after the report was made public; on the other hand, in contrast, Italian brands were deeply affected by the news. Moncler, who’s been rated by Goldman Sachs as a buy anyway, went down, in Milan, by 5,16%. The same goes for competitors, as reported by media: Brunello Cucinelli went down by 5,18%, while Salvatore Ferragamo dropped by 2,99% and Tod’s lost 4,34%. Prospective outlook for high end business is rather complicated then. Present days are not that easy either. In fact, according to Savigny Luxury Index latest report, in November the luxury industry declined overall, in terms of revenues, by 11,3%. How come? No wonder things have been going like that: the business has been mostly jeopardized by the commercial war, currently underway between China and the United States, alongside China’s lower consumptions.

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