08.05.2020 LVMHF Daily Analysis

08.05.2020 LVMHF Daily Analysis

LVMHF today is trading at $370.25, it fell down with $13.75 mainly because the coronavirus crisis, which first hit China late last year before spreading to Europe and the United States, has kept shoppers at home and forced retailers to shut stores, resulting in a crashing halt to a decade of spectacular growth for high-end brands. According to consultancy Bain Global sales of luxury goods are expected to slump by 50% to 60% in the second quarter even as some countries begin to ease coronavirus lockdowns and despite signs of recovery in the Chinese market. McKinsey added on and said  If stores remain shuttered for two months, roughly 80% of listed fashion companies in Europe and North America will be "in a state of financial distress". A recent rebound in China, where the lockdown has been gradually eased since March, is helping offset some of the declines in Europe and the United States, where luxury goods stores are only expected to reopen in the second half of May.