Latest news with #HelenJewell
Fashion Network
12 hours ago
- Business
- Fashion Network
Luxury's split between winners and losers is only getting wider
One striking example of the sector's divide is LVMH versus French peer Hermes International SCA. Sales at LVMH's key Fashion & Leather Goods division are expected to have dropped 7.8% in the second quarter, according to analyst estimates. The company reports after the bell on Thursday. Hermes, which has been an example of how companies can thrive on selling the highest-end items, is expected to report revenue growth of 12% at its leather goods division. Its results are due on July 30. In the case of the Louis Vuitton and Tiffany & Co. owner, the stock has lost roughly half of its value over the past two years, losing its crown of Europe's biggest stock, with investors increasingly worried about an unprecedented demand slump in China. Hermes shares, on the other hand, are weathering the broader industry pullback. After a 160% jump since the end of 2020, the stock is little changed this year versus a 7% drop in Goldman Sachs Group Inc.'s basket of luxury shares. In the current economic context, pricing power is critical, said Helen Jewell, Europe, Middle East and Africa chief investment officer at BlackRock Fundamental Equities. 'The challenge for investors has been some of the names that we thought had greater brand strength, and it turned out they actually didn't,' she said, adding that there could be some buying opportunities after the selloff in the sector 'but you do need to be selective.' For the sector as a whole, the difference is stark between now and the 2021 to 2023 boom times, when investors were rushing to snap up any European luxury shares as they reaped the profits from shoppers on a post-pandemic spending spree. But with China's sluggish economy putting a dent into demand for pricey handbags and watches, investors are buying shares in the brands that can captivate consumers and selling the ones that can't. Among this year's winners, shares in Burberry have surged more than 30%. The UK fashion brand is gaining traction with its turnaround plan and winning new customers through its outwear push. To some investors, luxury valuations are still too high overall even after this year's plunge in a number of stocks. The industry has an average forward price-earnings ratio of 27, according to data compiled by Bloomberg. That's a near 85% premium to the broader market and above the long-term premium from the past 10 years. 'This is a sector that is fully exposed to tariffs and fully exposed to the weaker dollar,' said Roland Kaloyan, head of European equity strategy at Societe Generale SA. 'It's going to be quite difficult, so I stick to my underweight.'
Fashion Network
13 hours ago
- Business
- Fashion Network
Luxury's split between winners and losers is only getting wider
For Europe's luxury stocks, this earnings season will hammer home the widening gulf between the winners and the losers. The industry got off to a promising start with robust earnings from British trench coat maker Burberry Group Plc that sent its stock up as much as 9% and better-than-expected sales at Cartier owner Richemont. But upcoming reports from LVMH Moët Hennessy Louis Vuitton SE, Kering SA and Salvatore Ferragamo SpA look less promising. If sales at these companies undershoot already weak forecasts, the shares may extend this year's drop that has wiped out market value of as much as 175 billion euros (205 billion dollars). While the outlook for luxury shares is crucial for Europe's stalled equity market rally given the weight of these companies, investors have to be more selective about the stocks they pick. 'It's not going to be one-tide-lifts-all-boats for the sector,' said Stefan-Guenter Bauknecht, a senior portfolio manager at DWS. 'It really depends on the category and how the brand is perceived in the category. And the VIP certainly helps.' One striking example of the sector's divide is LVMH versus French peer Hermes International SCA. Sales at LVMH's key Fashion & Leather Goods division are expected to have dropped 7.8% in the second quarter, according to analyst estimates. The company reports after the bell on Thursday. Hermes, which has been an example of how companies can thrive on selling the highest-end items, is expected to report revenue growth of 12% at its leather goods division. Its results are due on July 30. In the case of the Louis Vuitton and Tiffany & Co. owner, the stock has lost roughly half of its value over the past two years, losing its crown of Europe's biggest stock, with investors increasingly worried about an unprecedented demand slump in China. Hermes shares, on the other hand, are weathering the broader industry pullback. After a 160% jump since the end of 2020, the stock is little changed this year versus a 7% drop in Goldman Sachs Group Inc.'s basket of luxury shares. In the current economic context, pricing power is critical, said Helen Jewell, Europe, Middle East and Africa chief investment officer at BlackRock Fundamental Equities. 'The challenge for investors has been some of the names that we thought had greater brand strength, and it turned out they actually didn't,' she said, adding that there could be some buying opportunities after the selloff in the sector 'but you do need to be selective.' For the sector as a whole, the difference is stark between now and the 2021 to 2023 boom times, when investors were rushing to snap up any European luxury shares as they reaped the profits from shoppers on a post-pandemic spending spree. But with China's sluggish economy putting a dent into demand for pricey handbags and watches, investors are buying shares in the brands that can captivate consumers and selling the ones that can't. Among this year's winners, shares in Burberry have surged more than 30%. The UK fashion brand is gaining traction with its turnaround plan and winning new customers through its outwear push. To some investors, luxury valuations are still too high overall even after this year's plunge in a number of stocks. The industry has an average forward price-earnings ratio of 27, according to data compiled by Bloomberg. That's a near 85% premium to the broader market and above the long-term premium from the past 10 years. 'This is a sector that is fully exposed to tariffs and fully exposed to the weaker dollar,' said Roland Kaloyan, head of European equity strategy at Societe Generale SA. 'It's going to be quite difficult, so I stick to my underweight.'
Yahoo
3 days ago
- Business
- Yahoo
European Earnings Are Pricing in Tariff Risks, Says BlackRock's Jewell
(Bloomberg) -- The outlook for European earnings is appropriately reflecting tariff risks, according to BlackRock Inc.'s Helen Jewell, who sees the rally extending in the absence of a trade shock. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital 'Earnings numbers have already come down; that's not a complacent market,' Jewell, chief investment officer of fundamental equities EMEA at the asset manager, said in an interview. 'The gains have further to go as long as the European exporters pull their weight.' Jewell's view is in stark contrast to some market strategists, such as those at Goldman Sachs Group Inc., who warned that stocks are looking too sanguine given the lingering trade uncertainty ahead of the US tariff deadline on Aug. 1. The Stoxx Europe 600 Index has surged 16% since hitting a low on April 9, just before US President Donald Trump paused some of the harshest levies in a century. Still, a Citigroup Inc. index shows analysts have consistently downgraded earnings estimates since mid-March, while the rally has slowed in the past month as investors assessed the impact of the trade war on consumer demand. Analysts expect MSCI Europe companies to post a 4.8% drop in second-quarter earnings, the biggest year-over-year decline since early 2024, according to data compiled by Bloomberg Intelligence. 'If a company gets something a little bit wrong, there isn't much room for maneuver,' Jewell said. 'Is that a complacent market? No. Is it a market that perhaps is more fragile? Yes.' With trade deals yet to be finalized, Jewell warned against being overly exposed to either US or European stocks. Instead, she recommended focusing on themes such as artificial intelligence and sustainable energy. A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot Elon Musk's Empire Is Creaking Under the Strain of Elon Musk How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Jewell: Dollar Investors Outside US 'More Diversified'
BlackRock Fundamental Equities EMEA CIO Helen Jewell shares her views on reallocation trade. Speaking on Bloomberg Television, Jewell says US dollar investors outside the United States are "being much more diversified in how they think about portfolios." She also talks about "global cyclical names" in Europe that have not performed well, but "could be the next leg of the European story" if uncertainty around tariffs is "resolved."
Bloomberg
30-06-2025
- Business
- Bloomberg
Jewell: Dollar Investors Outside US 'More Diversified'
BlackRock Fundamental Equities EMEA CIO Helen Jewell shares her views on reallocation trade. Speaking on Bloomberg Television, Jewell says US dollar investors outside the United States are "being much more diversified in how they think about portfolios." She also talks about "global cyclical names" in Europe that have not performed well, but "could be the next leg of the European story" if uncertainty around tariffs is "resolved." (Source: Bloomberg)
