Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

StockBeat: Luxury Leads as Kering, Moncler Shrug off HK Blues

Stock Markets Oct 25, 2019 05:11AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith

Investing.com -- When the world economy slows down and times get tough, do you want to be in the business of selling low-cost comforts to the masses, or high-end puffer jackets and handbags to the fortunate few?

Friday’s results from around Europe suggest the latter: Anheuser Busch Inbev (BR:ABI), the world’s largest brewer, fell 9.5% after it cut its forecasts for the performance of its newly-spun-off Asian unit in response to falling shipments in China, while it noted that its U.S. division also weakened.

The development will give some grim satisfaction to investors who baulked at Inbev’s original price for the unit when it first tried to sell it earlier this year. That forced the giant brewer into carving out its Australian assets into a separate business before finally selling it at the bottom of a revised range second time around.

The third-quarter results led AB Inbev to cut its full-year earnings growth forecast to ‘moderate’ from ‘strong’.

It was quite a different story at Gucci owner Kering (PA:PRTP), whose shares leapt 6.5%, putting it at the top of the Euro Stoxx 50, after it said strong sales elsewhere more than compensated for the hit to sales at its Hong Kong boutiques in the three months to September. Kering’s sales in the Asia-Pacific region were still up nearly 17% on the year.

Kering’s shares hit their highest since July and are now only 4% short of the all-time high they hit earlier this year.

Likewise, fashion group Moncler (MI:MONC), famous for its expensive puffer jackets, rose 8.1% to its highest in six weeks after posting a 10% rise in currency-adjusted sales in the third quarter – despite a 40% drop in sales in Hong Kong. The Asia and the rest of the world region accounts for 40% of the group’s revenue as a rule.

Luxury names were the main prop to Europe’s big boards on Friday, as markets retreated from the week’s highs against a backdrop of fresh political uncertainty in the U.K. By 5:05 AM ET (1105 GMT), the benchmark Euro STOXX 600 was down 0.3% at 396.28, while the FTSE 100 was down 0.4%.

The German DAX performed slightly better after the closely-watched Ifo business climate index stayed unchanged in October, adding to evidence that Europe’s largest economy may be bottoming out.

StockBeat: Luxury Leads as Kering, Moncler Shrug off HK Blues
 

Related Articles

Former Deutsche Bank co-CEO Anshu Jain dies
Former Deutsche Bank co-CEO Anshu Jain dies By Reuters - Aug 13, 2022 2

(Reuters) -Anshu Jain, a top finance executive best known for helping German lender Deutsche Bank AG (NYSE:DB) take on the largest Wall Street firms, died overnight on Saturday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Marielisa Paris
Marielisa Paris Oct 25, 2019 6:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kerig , i m loving u
ojumah henry
ojumah henry Oct 25, 2019 5:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
welcome development
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email