Market Report: Luxury is starting to look shabby

Is luxury losing its lustre? Some City scribblers certainly think so. The shears were out yesterday for LVMH, Coach, Mulberry, Hugo Boss and Burberry. After a good run for the shares this year, the outlook is now uncertain. No immediate signs of stimulus from China, a mixed picture in the US and a depressed Europe are hitting the outlook for luxury players.

Scribes at Barclays warn that Permira-owned Hugo Boss could be high-risk, while brands with lots of shops that sell leather goods and have a limited exposure to European shoppers will fare better. Barclays downgraded handbag brand Mulberry's price target from 1930p to 1600p and British success story Burberry from over to equal weight, reducing the target from 1950p to 1600p.

Mulberry edged up 15p to 1345p while Burberry retreated 40p to 1315p.

HSBC experts think that now Chinese consumers do more of their luxury shopping overseas, pressure will pile up on those with too many shops in the country. Some established brands in Asia may lose market share – what HSBC scribblers call "first-mover disadvantage."

Swiss-based Cartier-to-Mont Blanc owner Richemont will today update the market with its August trading figures.

The pressure is on for the boss of Land Securities, the UK's largest property company. Rob Noel, chief executive for six months, has seen the stock downgraded by four analysts in two weeks.

The retail-to-office property group lost 16p to 777.5p yesterday as scribes from UBS, JPMorgan Chase and Exane BNP Paribas downgraded the Real Estate Investment Trust (REIT) stock to neutral. Property doyen Mike Prew at analyst Jefferies last month cut his recommendation on the stock to hold from buy.

British Land, the UK's second-largest property company, was also downgraded and its shares shed 14.5p to 527p.Unlike rival Hammerson, Land Securities and British Land have not narrowed their focus to one property sector, and remain property "generalists".

Analysts reckon the real-estate sector is looking less attractive after its recent strong performance, and Mr Noel will have to pull something out of the bag to get them to change their view.

A profitable exit for the UK taxpayer from Royal Bank of Scotland is an ever-more distant dream. Investec analyst and banking guru Ian Gordon has taken his scissors to the majority state-owned bank, downgrading the stock to hold from buy, and trimmed the share price target to 245p from 300p.

Mr Gordon, who is largely bullish on banks, thinks RBS's recent 20 per cent four-week rally is a cause for concern. Its shares slid 5.8p to 220.7p.

On a bad day for the FTSE 100, investors were jittery after Moody's cut its outlook on the European Union's credit rating to negative. The index slumped 86.4 points to 5672, losing the previous day's gains.

With the deadline for the merger between commodities giant Glencore (down 3.05p to 385.1p) and Xstrata (off 29.7p at 917.5p) on Friday, the deal looked ever more unlikely.

Software group Sage, a riser for the past two sessions following rumours of bidder interest re-emerging, fell back after a downgrade from Exane BNP Paribas. The shares edged back 3.2p to 300.3p.

Midcap equipment-rental group Ashtead raised its profits guidance, and its shares jumped 33.4p to 315.9p. Seymour Pierce raised its price target for the stock to 350p from 320p, rating it a buy. The shares have already moved up more than 40 per cent in the past year.

It was another bad day for financier Nat Rothschild's and Samin Tan's Bumi. The Indonesian coal miner has been hit by falling coal prices, a board bust-up and debt worries, and things appear to be getting worse as it fell another 15.2p to 288p.

As actress Bette Davis' character said in All About Eve, "Fasten your seat belts. It's going to be a bumpy night." Well, it was for shareholders in Aim-listed Africa-focused Chariot Oil & Gas yesterday. When the shares plummeted yesterday, the company had to admit results from drilling the Kabeljou exploration well on the Nimrod prospect "are not yet known". It will update the market when it can. The shares closed down 21p at 100.25p.

Life and Style
Customers can get their caffeine fix on the move
food + drink
Life and Style
techCould new invention save millions in healthcare bills?
Voices
Mosul dam was retaken with the help of the US
voicesRobert Fisk: Barack Obama is following the jihadists’ script
Arts and Entertainment
Loaded weapon: drugs have surprise side effects for Scarlett Johansson in Luc Besson’s ‘Lucy’
filmReview: Lucy, Luc Besson's complex thriller
PROMOTED VIDEO
News
peoplePamela Anderson rejects ice bucket challenge because of ALS experiments on animals
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
Arts and Entertainment
tvExecutive says content is not 'without any purpose'
News
A cleaner prepares the red carpet for the opening night during the 59th International Cannes Film Festival May 17, 2006 in Cannes, France.
newsPowerful vacuum cleaners to be banned under EU regulations
Arts and Entertainment
tvSpielberg involved in bringing his 2002 film to the small screen
Sport
sportLeague Managers' Association had described Malky Mackay texts as 'friendly banter'
News
A polar bear’s diet is rich in seal blubber and half of its own body weight is composed of fat
i100
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
News
peopleCareer spanned 70 years, including work with Holocaust survivors
News
people
Travel
Flocking round: Beyoncé, Madame Tussauds' latest waxwork, looking fierce in the park
travelIn a digital age when we have more access than ever to the stars, why are waxworks still pulling in crowds?
News
London is the most expensive city in Europe for cultural activities such as ballet
arts
Arts and Entertainment
Jeremy Clarkson has rejected criticisms of his language, according to BBC director of television Danny Cohen
tv
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Generalist HR Administrator, Tunbridge Wells, Kent - £28,000.

£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...

Application Support - Enterprise Java, SQL, Oracle, SQL Server

£45000 - £55000 per annum: Harrington Starr: A well-established financial soft...

Service Desk Analyst (Graduate, Helpdesk, Desktop, Surrey)

Negotiable: Harrington Starr: Service Desk Analyst (Graduate, Helpdesk, Deskto...

Service Desk Analyst (Graduate, Helpdesk, Desktop, Surrey)

Negotiable: Harrington Starr: Service Desk Analyst (Graduate, Helpdesk, Deskto...

Day In a Page

Air strikes? Talk of God? Obama is following the jihadists’ script

Air strikes? Talk of God? Obama is following the jihadists’ script

The President came the nearest he has come yet to rivalling George W Bush’s gormless reaction to 9/11 , says Robert Fisk
Ebola outbreak: Billy Graham’s son declares righteous war on the virus

Billy Graham’s son declares righteous war on Ebola

A Christian charity’s efforts to save missionaries trapped in Africa by the crisis have been justifiably praised. But doubts remain about its evangelical motives
Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC

Not even Jeremy Clarkson is bigger than the BBC, says TV boss

Corporation’s head of television confirms ‘Top Gear’ host was warned about racist language
Nick Clegg the movie: Channel 4 to air Coalition drama showing Lib Dem leader's rise

Nick Clegg the movie

Channel 4 to air Coalition drama showing Lib Dem leader's rise
Philip Larkin: Misogynist, racist, miserable? Or caring, playful man who lived for others?

Philip Larkin: What will survive of him?

Larkin's reputation has taken a knocking. But a new book by James Booth argues that the poet was affectionate, witty, entertaining and kind, as hitherto unseen letters, sketches and 'selfies' reveal
Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?

Waxing lyrical

Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?
Texas forensic astronomer finally pinpoints the exact birth of impressionism

Revealed (to the minute)

The precise time when impressionism was born
From slow-roasted to sugar-cured: how to make the most of the British tomato season

Make the most of British tomatoes

The British crop is at its tastiest and most abundant. Sudi Pigott shares her favourite recipes
10 best men's skincare products

Face it: 10 best men's skincare products

Oscar Quine cleanses, tones and moisturises to find skin-savers blokes will be proud to display on the bathroom shelf
Malky Mackay allegations: Malky Mackay, Iain Moody and another grim day for English football

Mackay, Moody and another grim day for English football

The latest shocking claims do nothing to dispel the image that some in the game on these shores exist in a time warp, laments Sam Wallace
La Liga analysis: Will Barcelona's hopes go out of the window?

Will Barcelona's hopes go out of the window?

Pete Jenson starts his preview of the Spanish season, which begins on Saturday, by explaining how Fifa’s transfer ban will affect the Catalans
Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape