An advertisement for Hugo Boss AG in Shanghai, China, on Wednesday, May 1, 2024.
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LONDON — European luxury stocks tumbled Monday as analysts warned of a deteriorating demand outlook, particularly among high-spending Chinese consumers.
Germany’s Hugo Boss was among the worst performers on the Stoxx 600 index by midday, down 4%, after analysts at Bank of America Securities downgraded the stock to underperform from buy. The second half is set to present a tougher consumer backdrop with higher discounting, they said.
“Following the post-Covid peak in consumption in 2022, luxury sector revenues have been sequentially slowing. The American consumer was the first to normalise, followed by the Korean, European and Japanese consumer,” BofA Securities analysts wrote in a research report Monday addressing challenges across the luxury sector.
“With the only sector support fading — the Chinese consumer…
