Euro­pean lux­ury goods shares fall

Weekend Argus (Saturday Edition) - - LIFE -

LONDON: Euro­pean lux­ury goods firms fell sharply yes­ter­day, with Swatch slump­ing 13 per­cent to its low­est in 6- and- a- half years af­ter the world’s big­gest watch­maker warned its first- half profit would drop by 50-60 per­cent.

Shares in Swatch touched their low­est level since late 2009 af­ter the com­pany said it ex­pected sales to fall about 12 per­cent in the first half, due to dwin­dling sales.

Swiss watch­mak­ers are grap­pling with weak de­mand as fewer Chi­nese tourists shop for time­pieces in Hong Kong and Europe and as a strong franc pushes up the pro­duc­tion cost for “Swiss made” watches.

Shares in other lux­ury goods com­pa­nies fell, with Richemont down 3.3 per­cent and LVMH fall­ing 2.5 per­cent.

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