Luxury Goods Sales Could Accelerate Slightly In 2016: HSBC

Despite posting a lower 3% constant FX growth last year, luxury goods sales should see a slight acceleration in sales growth of 4.5% in 2016, believe analysts at HSBC. Erwan Rambourg and colleagues said in their April 4 report titled “Luxury: cash in and carry on” that one should brace for short-term weakness in the luxury industry.

Luxury goods sales growth should be unimpressive short-term

Rambourg and team recall that at the start of 2016 before the Q4 2015 earnings season, they anticipated a soft Q4 2015 for the luxury industry as a whole to be followed by a better Q1 2016. However, Q4 2015 turned out to be not too bad, while Q1 now looks likely to have been lackluster. Looking...