Exports of high end Swiss watches are considered a good bellwether for the luxury goods sector and the latest data was pretty alarming.
Monthly sales fell by 16% in October, the biggest drop in seven years, investment bank UBS drills down into the detail.
‘Hong Kong continues to be weak (-22%) and the US sequentially declining to -17% (September +5%) maybe due to cautious purchasing ahead of the US elections.
‘Europe also declined to -16%. The only positives are ML China +3% (September flattish) and UK +9% which continues to grow (September +32%).'
Continuing pressure on the luxury space is potentially bad news for the likes of shoemaker Jimmy Choo (CHOO), trench coats-to-cashmere scarves seller Burberry (BRBY) and handbag maker Mulberry (MUL:AIM).
Mulberry reports first half results on 8 December, while both Burberry and Jimmy Choo are set to update on trading some time in January.