Sept 3 (Reuters) - European luxury stocks fell on Thursday, extending recent losses as investors grew increasingly cautious about the sector's recovery prospects.
Shares in sector bellwether LVMH fell 2.3%, extending a recent slide to their lowest price since 2020, while French peers Hermes and Gucci-owner Kering dropped around 3% each.
Elsewhere in Europe, Brunello Cucinelli, Richemont and Burberry lost between 1% and 2%.
Luxury companies remain under pressure after years of slowing sales and lacklustre earnings. Cautious forecasts and weak signs of a rebound in spending by wealthy shoppers have so far held back hopes of a comeback.
The STOXX Europe Luxury 10 index, which tracks top luxury goods makers, hit its lowest level in nearly three months, taking its year-to-date decline to 19% and bucking a broadly steady market.
Analysts at Bank of America said in a note that industry data for the third quarter pointed to a slowdown in demand of about 3 percentage points compared with the second quarter, with weakness most evident in the U.S., Japan, South Korea and Asia.
Equita analyst Paola Carboni said valuations in the luxury sector appeared less demanding, though the backdrop remains fragile.
"Visibility on the confirmation of similar growth trends in the second half (of the year) is still limited considering the more difficult comparison base and the macro and geopolitical context," Carboni said.
Reporting by Gianluca Lo Nostro and Elisa Anzolin; Editing by Milla Nissi-Prussak
Source: Reuters