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These posh stocks could fare relatively well in a trade war

August 17, 2018

If you’re tracking the global trade fights, this can’t feel like a great time to own European companies that export posh goods. All of them would face challenges in a full-blown trade war.

However, Gucci parent Kering KER, +0.07% and LVMH Moët Hennessy Louis Vuitton MC, -0.22% could be relatively insulated, reckon UBS analysts, led by Helen Brand.

“Overall, soft luxury tends to be a little bit more defensive than hard luxury,” she tells Barron’s, referring to sellers of handbags and shoes, versus jewelers and watchmakers. “You don’t get the sort of destocking and restocking that you get in a wholesale channel.” And she adds: “Also, it’s just a slightly lower price-point product than a luxury watch or such.”

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