The Slowdown In China And The European Debt Crisis Have Led To The End Of The Surge In Luxury Demand.

　　 Britain Burberry group, a fashion and luxury goods supplier, issued a profit warning on Tuesday, indicating that the slowdown in China's economic growth and the development of the European sovereign debt crisis have brought the end of the three year surge in demand for luxury goods to an end.

The Burberry group, known for its camel hair, red and black checkerboard windbreaker, is the first to make similar profit warning. Luxury goods Brand. In the past few months, investors had widely suspected that demand in this area began to show signs of decline. Burberry group's share price has dropped more than 20% on the day of the warning, the lowest price in 11 months. Including the world's largest luxury goods maker, MOET & CHANDON Hennessy Louis Vuitton group, the main competitors in Europe and the Americas share prices have fallen to varying degrees.

From 2008 to 2009 financial crisis The performance of luxury suppliers who rebounded strongly is also maintained in the global economic slowdown due to the rapid growth of China and other emerging market countries making up for the lack of sales in Europe and the United States. But as China's economic growth slows, investors have begun to speculate on how long the luxury sector can last and whether it can maintain good performance.

Burberry group said in a statement on Tuesday that sales of the group for more than a year were up to zero in the 10 week ending September 8th. This is far below the same store sales growth of 6% in the quarter ending June 30th. Burberry group subsequently warned that the company's annual profit forecast may be at the bottom of the market forecast.

Although Burberry group did not specify areas where performance growth is not enough, some analysts believe that all major markets, including Asia, Europe and the United States, should have varying degrees of deterioration.

Driven by the sharp drop in Burberry's share price, the main competitors, France's Louis Weedon and PPR, fell by more than 4%, while the share price of Switzerland's peak group fell by nearly 6%. Us luxury goods manufacturers were also dragged down by the negative performance of European peers: jeweller Tiffany shares fell 1.6%, and Ralph Lauren fell 3.7% after opening soon.

However, some analysts believe that Burberry group's earnings warning does not necessarily mean that the industry will encounter difficulties. Hermes international raised its annual sales expectations last month. Smaller Italy brand Salvatore Ferragamo also gave sales satisfaction data.