Bulletin
Investor Alert

Europe Markets Archives | Email alerts

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

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

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

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 -1.84% 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 -1.94% gained 0.3%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.75% jumped 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.20% increased 0.4%. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.3094% and pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.3456% were both lower against a stronger U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.10% . 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 -1.78% /zigman2/quotes/203048482/delayed UK:AZN -1.02% fell 1.9% and Roche /zigman2/quotes/206324342/delayed CH:ROG -1.22% fell 1.3%. Novo Nordisk /zigman2/quotes/203484366/composite NVO -0.10% /zigman2/quotes/203484366/composite NVO -0.10% 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 -1.92% and 2.5% gain for rival LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC -0.95% . The rest of the sector was also up, with Hermès International /zigman2/quotes/200522137/delayed FR:RMS -0.47% shares up 2%, Christian Dior /zigman2/quotes/201058228/delayed FR:CDI -1.44% 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 -1.28% /zigman2/quotes/203901799/delayed UK:HSBA -0.96% , 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 -2.93% , 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 -4.21% /zigman2/quotes/210414141/delayed UK:CCL -5.18% up 7%, travel group TUI /zigman2/quotes/207049334/delayed UK:TUI -3.61% rose over 5%, while airlines Deutsche Lufthansa /zigman2/quotes/201210530/delayed XE:LHA -2.59% gained 5% and Ryanair 3.5%.

/zigman2/quotes/210599654/delayed
XX : STOXX
474.44
-8.91 -1.84%
Volume: 0.00
Jan. 21, 2022 11:03p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,603.88
-308.45 -1.94%
Volume: 105,899
Jan. 21, 2022 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,068.59
-125.57 -1.75%
Volume: 110,697
Jan. 21, 2022 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,494.13
-90.88 -1.20%
Volume: 734,087
Jan. 21, 2022 4:56p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1346
+0.0035 +0.3094%
Volume: 0.0000
Jan. 21, 2022 4:59p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3553
-0.0047 -0.3456%
Volume: 0.0000
Jan. 21, 2022 4:59p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
95.64
-0.10 -0.10%
Volume: 0.00
Jan. 21, 2022 4:59p
loading...
/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 59.10
-1.07 -1.78%
Volume: 0.00
Jan. 21, 2022 4:00p
P/E Ratio
93.28
Dividend Yield
2.32%
Market Cap
$183.80 billion
Rev. per Employee
$452,181
loading...
/zigman2/quotes/203048482/delayed
UK : U.K.: London
8,752.00 p
-90.00 -1.02%
Volume: 1.75M
Jan. 21, 2022 4:35p
P/E Ratio
93.22
Dividend Yield
2.31%
Market Cap
£135.60 billion
Rev. per Employee
£330,242
loading...
/zigman2/quotes/206324342/delayed
CH : Switzerland: SWX
CHF 360.65
-4.45 -1.22%
Volume: 1.49M
Jan. 21, 2022 5:30p
P/E Ratio
22.20
Dividend Yield
2.52%
Market Cap
CHF312.47 billion
Rev. per Employee
CHF588,922
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 95.36
-0.10 -0.10%
Volume: 1.35M
Jan. 21, 2022 4:00p
P/E Ratio
29.68
Dividend Yield
1.10%
Market Cap
$219.55 billion
Rev. per Employee
$477,136
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 95.36
-0.10 -0.10%
Volume: 1.35M
Jan. 21, 2022 4:00p
P/E Ratio
29.68
Dividend Yield
1.10%
Market Cap
$219.55 billion
Rev. per Employee
$477,136
loading...
/zigman2/quotes/204653408/delayed
FR : France: Euronext Paris
668.80
-13.10 -1.92%
Volume: 220,178
Jan. 21, 2022 5:35p
P/E Ratio
24.89
Dividend Yield
1.35%
Market Cap
€83.19 billion
Rev. per Employee
€409,024
loading...
/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
697.20
-6.70 -0.95%
Volume: 536,630
Jan. 21, 2022 5:39p
P/E Ratio
37.12
Dividend Yield
1.00%
Market Cap
€351.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200522137/delayed
FR : France: Euronext Paris
1,364.00
-6.50 -0.47%
Volume: 87,775
Jan. 21, 2022 5:35p
P/E Ratio
64.36
Dividend Yield
0.33%
Market Cap
€142.73 billion
Rev. per Employee
€490,151
loading...
/zigman2/quotes/201058228/delayed
FR : France: Euronext Paris
686.00
-10.00 -1.44%
Volume: 5,733
Jan. 21, 2022 5:35p
P/E Ratio
31.79
Dividend Yield
1.02%
Market Cap
€123.76 billion
Rev. per Employee
€364,988
loading...
/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 33.87
-0.44 -1.28%
Volume: 3.35M
Jan. 21, 2022 4:00p
P/E Ratio
12.21
Dividend Yield
3.22%
Market Cap
$138.98 billion
Rev. per Employee
$249,834
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
505.40 p
-4.90 -0.96%
Volume: 24.21M
Jan. 21, 2022 4:35p
P/E Ratio
12.58
Dividend Yield
3.21%
Market Cap
£102.54 billion
Rev. per Employee
£182,459
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
157.80 p
-4.76 -2.93%
Volume: 19.79M
Jan. 21, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£7.83 billion
Rev. per Employee
£72,726
loading...
/zigman2/quotes/200877079/composite
US : U.S.: NYSE
$ 18.42
-0.81 -4.21%
Volume: 2.44M
Jan. 21, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$22.43 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210414141/delayed
UK : U.K.: London
1,384.20 p
-75.60 -5.18%
Volume: 1.36M
Jan. 21, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£16.55 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
250.90 p
-9.40 -3.61%
Volume: 4.41M
Jan. 21, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.07 billion
Rev. per Employee
£81,701
loading...
/zigman2/quotes/201210530/delayed
XE : Germany: Xetra
6.91
-0.18 -2.59%
Volume: 7.18M
Jan. 21, 2022 6:30p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€8.26 billion
Rev. per Employee
€123,309
loading...

Get news alerts on Euro — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.