Chinese demand, tariffs threaten the bench

The problem of the problem of Europe shows the signs of revival after a large winning season. However, persistent weakness in China – and the perspective of US tariffs – can even leave the most exclusive brands for pocket share.

“We have been one of the worst years for the sector of 2024. We believe that in the second half of 2025, especially in the second half,” Great capital analyst in Clargebris investments, CNBC told CNBC.

Birkin Bag Manufacturer Hermes stationed The fourth quarter sale At the beginning of this month, to extend the expansion of the expansion of a wide market season, which also broadcasts fashionable houses Lvmh and Gucci-owner Get dry Beat quarterly forecasts.

The results have added weight until a long-awaited forecast Turning for sectorAfter the Cartier owner Richemont Last month, a quarter of sales in a quarter of three months sent “the highest” quarterly sales.

“The result seems to be behind the worst – it was probably the third quarter of 2024, and a cyclic managed by US consumers and European consumers,” Luca Solca, Bernstein’de General Analytics for Global Luxury Goods -And he said through the open.

Poor Chinese sales remained as a repetitive theme of the fourth quarter report L’oreal and Kering’s Gucci – especially two groups exposed to the market – emphasize Reduction of sales in the country. Meanwhile, US President, the possible stacks of European companies, which were combined with more macroeconomic uncertainty, were the main features of earning challenges.

In UBS, the head of European luxury goods Zuzanna Pusz, the companies said that the companies should be applied to consumers with price increases – both Kerkin and Hermes, in the beginning of this month. However, some companies will have a harsh time that justifies additional price growth than others.

“We are now away from a heavy price increase. If the firms were not 25% tariff, it will be difficult to offset them,” he said. Some firms can be “very painful”.

Europe’s luxury sector is unusual, most of the operations cannot be repeated in foreign markets like the United States – the key to Trump’s import expenses. For example, having a “Italy” label on a leather jacket is the condition of the product produced there.

Pusz said that it is possible to punish the most of luxury firms. However, the target economy, such as trading, and China, for example, increasing the total prices and hinders the sense of consumer – this sector is harmful to the economy.

“Something that would negatively affect the economy in China,” said Pusz this month before video call.

“Macro is more difficult for consumption base … they buy less, but they buy better,” said Madjo told CNBC “Squawk Box Europe“At the beginning of this month. The sector is now aware of all these issues and is trying to start receiving some solutions.”

Analysts have received higher quality brands and higher levels of consumer consumption base, at least have reached a higher level in the near future.

“Quality names can be brighter among Bosyncratic problems,” said Bernstein, pointing to the sustainable power of stamps, Richemont and Burberry, as long as the growth prospects, pointed to the continuous power of sustainable brands.

“The big question means saying luxury today,” he said. “The more clarified thing is a good will or the inheritance of the brands in the past.”