North America Luxury Stocks Drop as Hong Kong Protests Mount
North America Luxury Stocks Drop as Hong Kong Protests Escalate
(Bloomberg) -- Tiffany & Co., Estee Lauder Cos., Movado Group Inc. and other North America luxury-goods stocks sank after protests in Hong Kong escalated and all flights at the region’s airport were canceled.
Hong Kong is a major market for expensive consumer products, and the protests, which which have continued for 10 straight weekends, are disrupting retail businesses, travel, and gaming.
An index of North America luxury goods has fallen nearly 30% since late April, when protests began over a -- now shelved -- extradition bill. That compares to a drop of about 1.6% for the S&P 500 Index over the same period. The group has also been battered by the continued back-and-forth of the U.S.-China trade war.
The Bloomberg North America Luxury Goods Index (BIUSLGCP) fell as much as 3.6% on Monday, extending Friday’s 3.7% drop. Top decliners in the index include Fossil Group Inc., Tapestry Inc. and Capri Holdings Ltd. Non-index member Signet Jewelers Ltd. plunged as much as 12%. Earlier, European luxury names including LVMH, Richemont and Burberry fell on bourses in Paris, London, Frankfurt, Zurich and Copenhagen.
To contact the reporter on this story: Janet Freund in New York at jfreund11@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Morwenna Coniam
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