Leading European Banks Caution on Euro Strength Amid U.S. Tariffs
A BNP Paribas SA branch in Paris, France, on August 2, 2024.
Bloomberg | Bloomberg | Getty Images
Luxury Stocks Surge
Despite regional trends, luxury stocks in Europe are experiencing a rally, prominently driven by LVMH.
The French luxury powerhouse was observed with a 2.5% increase, retreating from early gains, following better-than-expected first-half earnings reported Thursday evening.
The Stoxx Europe Luxury 10 index is up 1.6%, with Kering shares rising by 3% and Hermes increasing by 1.2%.
However, the index has decreased over 12% over the past six months.
— Chloe Taylor
Optimism in LVMH Earnings, Says Deutsche Bank
New York City.
Adam Gray | Reuters
On Friday morning, Deutsche Bank’s luxury equity analyst Adam Cochrane noted that LVMH’s first-half results exceeded expectations, indicating that the company is nearing its earnings trough.
Although the quarter wasn’t stellar, with a year-over-year EBIT decline of 15%, improvements are anticipated in cFX sales starting in Q3, primarily due to reduced tourism impacts.
— Chloe Taylor
LVMH Shares Rise Following Earnings Report
A Louis Vuitton bag featured during the Viva Technology conference in Paris, France, June 12, 2025.
Benoit Tessier | Reuters
LVMH shares rose by about 0.6% by 8:56 a.m. in London following a second-quarter report showing a 9% decline in its core fashion and leather goods segment.
Overall, the company’s sales fell 4%, but the operating profit decrease of 15% was still better than anticipated.
CEO Bernard Arnault announced plans for a new Texas factory by 2027 to counteract U.S. tariffs.
— Domi Suskova
Puma Shares Decline 18% After Adjusted Outlook
A Puma store in London on May 1, 2025.
Bloomberg | Getty Images
Puma’s shares dropped 18% after the brand reported disappointing second-quarter sales and revised its full-year forecast downward due to U.S. trade tariffs.
The company expects a low-double digit percentage decline in annual sales.
— Karen Gilchrist
European Stocks Decline
European markets commenced their final session of the week with a general decline, as the pan-European Stoxx 600 index fell by 0.5%, affecting all sectors negatively.
The auto sector, especially hit by losses, is facing challenges due to Volkswagen’s recent guidance cut linked to U.S. tariffs.
— Chloe Taylor
