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Nov. 5, 2021, 10:35 a.m. EDT

Handbag wars? Chanel price hikes rally luxury goods makers in Europe

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By Barbara Kollmeyer

European stocks perked up further on Friday, benefiting from gains in luxury goods makers and travel-related companies and gains in U.S. stocks after better-than-expected jobs data.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.19% rose 0.3% to 484.55, poised for its fifth-straight fresh record close, after banging out new highs all week. The index closed at 483.21 on Thursday. For the week, the Stoxx 600 is up 1.9%, which will be the fifth-straight weekly win in a row.

Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.17% gained 0.3%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.06% jumped 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.64% increased 0.4%. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.2051% and pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.3245% were both lower against a stronger U.S. dollar /zigman2/quotes/210598269/delayed DXY +0.09% . The pound also continued to lose ground after surprise inaction by the Bank of England on Thursday.

Read: Pound falls near September lows as Bank of England surprise continues to reverberate

Fresh data showed German industrial production fell in September for the second straight month as supply-chain bottlenecks weighed on factory output.

Among stocks on the move, drugmakers were lower, with shares of AstraZeneca PLC /zigman2/quotes/200304487/composite AZN +0.13% /zigman2/quotes/203048482/delayed UK:AZN +0.06% fell 1.9% and Roche /zigman2/quotes/206324342/delayed CH:ROG +0.02% fell 1.3%. Novo Nordisk /zigman2/quotes/203484366/composite NVO +0.94% /zigman2/quotes/203484366/composite NVO +0.94% shares fell 3%.

Read: Pfizer shares soar after data finds COVID antiviral re d uced risk of death or hospitalization by 89% in high-risk adults

France’s CAC 40 was lifted by a 3% gain for shares of luxury goods maker Kering /zigman2/quotes/204653408/delayed FR:KER -0.54% and 2.5% gain for rival LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC -0.82% . The rest of the sector was also up, with Hermès International /zigman2/quotes/200522137/delayed FR:RMS -1.26% shares up 2%, Christian Dior /zigman2/quotes/201058228/delayed FR:CDI -0.63% stock up 2%.

Piral Dadhania, analyst at RBC Capital, said luxury goods companies have benefited this week from  +10% -15% price hikes on two of privately-owned Chanel’s iconic women’s handbags. The sector has also held up well in the third quarter and through October, despite tougher comparisons, China COVID disruption and a moderating economic environment, to name a few, the analyst said.

“The broader luxury sector should benefit from Chanel’s most recent price increases, as it creates some headroom in the coming months/quarters, even if we do not expect most brands to take as aggressive an approach,” said the analyst, who noted that Louis Vuitton hiked prices 6% in October for 1/3 of its handbag SKU mix, a brand that has benefited, according to a management’s third-quarter earnings call.

The banking sector was higher, led by HSBC /zigman2/quotes/208272822/composite HSBC -0.19% /zigman2/quotes/203901799/delayed UK:HSBA +1.68% , which was up over 1%.

Also climbing was the travel sector, after well-received results from International Consolidated Airlines /zigman2/quotes/208070069/delayed UK:IAG -0.42% , with those shares up 2.5%. The company reported positive operating cash flow for the first time since the start of the pandemic.

Gains spread across the sector, with cruise group Carnival /zigman2/quotes/200877079/composite CUK +0.38% /zigman2/quotes/210414141/delayed UK:CCL +1.26% up 7%, travel group TUI /zigman2/quotes/207049334/delayed UK:TUI +0.52% rose over 5%, while airlines Deutsche Lufthansa /zigman2/quotes/201210530/delayed XE:LHA -0.85% gained 5% and Ryanair 3.5%.

/zigman2/quotes/210599654/delayed
XX : STOXX
458.05
+0.89 +0.19%
Volume: 0.00
Feb. 7, 2023 12:27p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,320.51
-25.40 -0.17%
Volume: 15,950
Feb. 7, 2023 12:27p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,141.40
+4.30 +0.06%
Volume: 17,670
Feb. 7, 2023 12:27p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,886.57
+49.86 +0.64%
Volume: 132,187
Feb. 7, 2023 11:27a
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/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.0704
-0.0022 -0.2051%
Volume: 0.0000
Feb. 7, 2023 6:42a
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.1979
-0.0039 -0.3245%
Volume: 0.0000
Feb. 7, 2023 6:42a
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/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
103.71
+0.09 +0.09%
Volume: 0.00
Feb. 7, 2023 6:32a
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/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 63.52
+0.08 +0.13%
Volume: 4.70M
Feb. 6, 2023 4:00p
P/E Ratio
97.30
Dividend Yield
2.24%
Market Cap
$198.48 billion
Rev. per Employee
$544,657
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/zigman2/quotes/203048482/delayed
UK : U.K.: London
10,586.00 p
+6.00 +0.06%
Volume: 225,955
Feb. 7, 2023 11:27a
P/E Ratio
96.52
Dividend Yield
2.09%
Market Cap
£163.94 billion
Rev. per Employee
£426,154
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/zigman2/quotes/206324342/delayed
CH : Switzerland: SWX
CHF 283.95
+0.05 +0.02%
Volume: 368,822
Feb. 7, 2023 12:27p
P/E Ratio
18.44
Dividend Yield
3.35%
Market Cap
CHF230.78 billion
Rev. per Employee
CHF610,744
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/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 138.07
+1.28 +0.94%
Volume: 1.68M
Feb. 6, 2023 4:00p
P/E Ratio
39.92
Dividend Yield
0.91%
Market Cap
$309.21 billion
Rev. per Employee
$459,590
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/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 138.07
+1.28 +0.94%
Volume: 1.68M
Feb. 6, 2023 4:00p
P/E Ratio
39.92
Dividend Yield
0.91%
Market Cap
$309.21 billion
Rev. per Employee
$459,590
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/zigman2/quotes/204653408/delayed
FR : France: Euronext Paris
572.90
-3.10 -0.54%
Volume: 37,582
Feb. 7, 2023 12:27p
P/E Ratio
19.28
Dividend Yield
2.27%
Market Cap
€74.09 billion
Rev. per Employee
€456,144
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/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
807.50
-6.70 -0.82%
Volume: 106,917
Feb. 7, 2023 12:27p
P/E Ratio
28.81
Dividend Yield
1.49%
Market Cap
€415.59 billion
Rev. per Employee
€450,813
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/zigman2/quotes/200522137/delayed
FR : France: Euronext Paris
1,720.50
-22.00 -1.26%
Volume: 14,388
Feb. 7, 2023 12:27p
P/E Ratio
62.02
Dividend Yield
0.46%
Market Cap
€186.06 billion
Rev. per Employee
€580,955
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/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
793.00
-5.00 -0.63%
Volume: 947.00
Feb. 7, 2023 12:23p
P/E Ratio
24.70
Dividend Yield
1.51%
Market Cap
€147.49 billion
Rev. per Employee
€450,813
loading...
/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 35.92
-0.07 -0.19%
Volume: 1.88M
Feb. 6, 2023 4:00p
P/E Ratio
12.03
Dividend Yield
3.73%
Market Cap
$144.26 billion
Rev. per Employee
$312,823
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
606.00 p
+10.00 +1.68%
Volume: 3.12M
Feb. 7, 2023 11:27a
P/E Ratio
12.92
Dividend Yield
3.71%
Market Cap
£119.15 billion
Rev. per Employee
£246,020
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
169.16 p
-0.72 -0.42%
Volume: 2.36M
Feb. 7, 2023 11:27a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.54 billion
Rev. per Employee
£232,926
loading...
/zigman2/quotes/200877079/composite
US : U.S.: NYSE
$ 10.68
+0.04 +0.38%
Volume: 1.78M
Feb. 6, 2023 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$14.72 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210414141/delayed
UK : U.K.: London
883.80 p
+11.00 +1.26%
Volume: 107,308
Feb. 7, 2023 11:27a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£12.15 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
183.85 p
+0.95 +0.52%
Volume: 407,271
Feb. 7, 2023 11:26a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.25 billion
Rev. per Employee
£229,576
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/zigman2/quotes/201210530/delayed
XE : Germany: Xetra
9.72
-0.08 -0.85%
Volume: 863,172
Feb. 7, 2023 12:27p
P/E Ratio
68.35
Dividend Yield
0.00%
Market Cap
€11.84 billion
Rev. per Employee
€282,325
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