Mixed set of results with the stronger-than-expected recovery in China offsetting the decline in cognac, mainly in the US

“Demand for entry-price leather goods, jewelry and cognac from US aspirational customers will not recover immediately and visibility for the rest of the year remains low,” notably due to an uncertain macro-economic environment in China.

Eoin Treacy's view

Luxury goods were one of the primary avenues for betting on the strength of China’s reopening. A narrowing of breadth within the sector is a sign of declining global appetite for high priced aspirational goods. Declining demand for the less desirable brands spreading to the first tier is a sign of caution among consumers and is now also evident in luxury watches. Second-hand Rolex prices are now also falling.