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

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 +0.28% 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 +0.60% gained 0.3%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.18% jumped 0.9% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.26% increased 0.4%. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0559% and pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.1743% were both lower against a stronger U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.06% . 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 +0.06% /zigman2/quotes/203048482/delayed UK:AZN +1.57% fell 1.9% and Roche /zigman2/quotes/206324342/delayed CH:ROG +0.79% fell 1.3%. Novo Nordisk /zigman2/quotes/203484366/composite NVO -0.34% /zigman2/quotes/203484366/composite NVO -0.34% 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 -0.96% and 2.5% gain for rival LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC -0.90% . The rest of the sector was also up, with Hermès International /zigman2/quotes/200522137/delayed FR:RMS -1.40% shares up 2%, Christian Dior /zigman2/quotes/201058228/delayed FR:CDI -0.76% 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 +1.15% /zigman2/quotes/203901799/delayed UK:HSBA +1.22% , 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 +0.62% , 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 -1.73% /zigman2/quotes/210414141/delayed UK:CCL +0.96% up 7%, travel group TUI /zigman2/quotes/207049334/delayed UK:TUI +1.46% rose over 5%, while airlines Deutsche Lufthansa /zigman2/quotes/201210530/delayed XE:LHA +0.25% gained 5% and Ryanair 3.5%.

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Add to watchlist XX:SXXP

STOXX Europe 600 Index

XX : STOXX

459.46

+1.27 +0.28%

Volume: 0.00

Feb. 8, 2023 5:50p

/zigman2/quotes/210597999/delayed

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DAX

DX : Xetra Indices

15,412.05

+91.17 +0.60%

Volume: 61,344

Feb. 8, 2023 6:30p

/zigman2/quotes/210597958/delayed

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CAC 40 Index

FR : France: Euronext Paris

7,119.83

-12.52 -0.18%

Volume: 84,748

Feb. 8, 2023 6:05p

/zigman2/quotes/210598409/delayed

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FTSE 100 Index

UK : FTSE UK

7,885.17

+20.46 +0.26%

Volume: 513,731

Feb. 8, 2023 4:55p

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Euro

US : Tullett Prebon

1.0724

-0.0006 -0.0559%

Volume: 0.0000

Feb. 8, 2023 2:49p

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British Pound

US : Tullett Prebon

1.2068

+0.0021 +0.1743%

Volume: 0.0000

Feb. 8, 2023 2:49p

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U.S. Dollar Index (DXY)

US : U.S.: ICE Futures U.S.

103.37

-0.06 -0.06%

Volume: 0.00

Feb. 8, 2023 2:39p

/zigman2/quotes/200304487/composite

Add to watchlist AZN

AstraZeneca PLC ADR

US : U.S.: Nasdaq

$ 64.33

+0.04 +0.06%

Volume: 3.57M

Feb. 8, 2023 2:49p

P/E Ratio

98.59

Dividend Yield

2.21%

Market Cap

$197.04 billion

Rev. per Employee

$544,657

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AstraZeneca PLC

UK : U.K.: London

10,752.00 p

+166.00 +1.57%

Volume: 1.64M

Feb. 8, 2023 4:35p

P/E Ratio

98.03

Dividend Yield

2.06%

Market Cap

£164.06 billion

Rev. per Employee

£426,154

/zigman2/quotes/206324342/delayed

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Roche Holding AG

CH : Switzerland: SWX

CHF 286.75

+2.25 +0.79%

Volume: 1.67M

Feb. 8, 2023 5:30p

P/E Ratio

18.62

Dividend Yield

3.31%

Market Cap

CHF232.36 billion

Rev. per Employee

CHF610,744

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Novo Nordisk A/S ADR

US : U.S.: NYSE

$ 139.11

-0.48 -0.34%

Volume: 850,288

Feb. 8, 2023 2:49p

P/E Ratio

40.29

Dividend Yield

0.90%

Market Cap

$312.59 billion

Rev. per Employee

$459,590

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Novo Nordisk A/S ADR

US : U.S.: NYSE

$ 139.11

-0.48 -0.34%

Volume: 850,288

Feb. 8, 2023 2:49p

P/E Ratio

40.29

Dividend Yield

0.90%

Market Cap

$312.59 billion

Rev. per Employee

$459,590

/zigman2/quotes/204653408/delayed

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Kering

FR : France: Euronext Paris

€ 567.90

-5.50 -0.96%

Volume: 199,318

Feb. 8, 2023 5:35p

P/E Ratio

19.11

Dividend Yield

2.29%

Market Cap

€70.97 billion

Rev. per Employee

€456,144

/zigman2/quotes/201350549/delayed

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LVMH Moet Hennessy Louis Vuitton SE

FR : France: Euronext Paris

€ 800.10

-7.30 -0.90%

Volume: 319,321

Feb. 8, 2023 5:36p

P/E Ratio

28.54

Dividend Yield

1.50%

Market Cap

€404.57 billion

Rev. per Employee

€450,813

/zigman2/quotes/200522137/delayed

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Hermes International S.C.A.

FR : France: Euronext Paris

€ 1,690.00

-24.00 -1.40%

Volume: 75,674

Feb. 8, 2023 5:35p

P/E Ratio

60.92

Dividend Yield

0.47%

Market Cap

€179.36 billion

Rev. per Employee

€580,955

/zigman2/quotes/201058228/delayed

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Christian Dior SE

FR : France: Euronext Paris

€ 785.50

-6.00 -0.76%

Volume: 4,798

Feb. 8, 2023 5:35p

P/E Ratio

24.46

Dividend Yield

1.53%

Market Cap

€142.79 billion

Rev. per Employee

€450,813

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HSBC Holdings PLC ADR

US : U.S.: NYSE

$ 36.90

+0.42 +1.15%

Volume: 1.45M

Feb. 8, 2023 2:49p

P/E Ratio

12.38

Dividend Yield

3.63%

Market Cap

$145.09 billion

Rev. per Employee

$312,823

/zigman2/quotes/203901799/delayed

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HSBC Holdings PLC (UK Reg)

UK : U.K.: London

612.40 p

+7.40 +1.22%

Volume: 15.49M

Feb. 8, 2023 4:35p

P/E Ratio

13.06

Dividend Yield

3.67%

Market Cap

£120.81 billion

Rev. per Employee

£246,020

/zigman2/quotes/208070069/delayed

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International Consolidated Airlines Group S.A.

UK : U.K.: London

168.98 p

+1.04 +0.62%

Volume: 9.76M

Feb. 8, 2023 4:35p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

£8.32 billion

Rev. per Employee

£232,926

/zigman2/quotes/200877079/composite

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Carnival PLC ADR

US : U.S.: NYSE

$ 10.78

-0.19 -1.73%

Volume: 1.24M

Feb. 8, 2023 2:48p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$15.11 billion

Rev. per Employee

N/A

/zigman2/quotes/210414141/delayed

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Carnival PLC

UK : U.K.: London

882.60 p

+8.40 +0.96%

Volume: 961,904

Feb. 8, 2023 4:35p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

£12.58 billion

Rev. per Employee

N/A

/zigman2/quotes/207049334/delayed

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TUI AG

UK : U.K.: London

183.85 p

+2.65 +1.46%

Volume: 2.14M

Feb. 8, 2023 4:35p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

£3.23 billion

Rev. per Employee

£229,576

/zigman2/quotes/201210530/delayed

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Deutsche Lufthansa AG

XE : Germany: Xetra

€ 9.68

+0.02 +0.25%

Volume: 3.94M

Feb. 8, 2023 6:30p

P/E Ratio

68.05

Dividend Yield

0.00%

Market Cap

€11.54 billion

Rev. per Employee

€282,325