Luxury Goods Stock Analyst: Tariff Turmoil Will Impact Customer Wealth

Jin10 data reported on April 9, analysts warn that luxury goods manufacturers need to worry not about tariffs, but about the impact of the subsequent big dump in the stock market on customer wealth. Deutsche Bank analyst Cockburn believes this turmoil could disrupt the recovery of the luxury goods industry, which is already plagued by slowing demand issues. He downgraded the stock ratings of the best-performing Richemont and Kering SA, the parent company of Gucci, to hold. Morgan Stanley analysts state that the tariffs themselves won’t have much impact on luxury goods companies, as they can pass on any tariffs to consumers through price increases. The greater risk comes from the ensuing economic recession and the impact of the big dump in the stock market on consumer confidence.