It looks like the party’s over for luxury goods in China

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Hugo Boss said in its preliminary Q2 financial results on Monday that the Chinese market — a key one for the German fashion brand — was “particularly challenging.”

British fashion house Burberry’s sales in mainland China fell 21% year-over-year in the most recent quarter, which board chair Gerry Murphy attributed to “deteriorating consumer confidence” in an investor call on Monday. The Chinese market had been “weaker than we expected,” he said.

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Swiss watch group Swatch said it expects the Chinese market “to remain challenging for the entire luxury goods industry until the end of the year.”

Swatch said in its financial release on Monday that there had been a “sharp drop in demand for luxury goods in China” and Southeast Asian markets, which it said are “heavily dependent” on Chinese tourists.

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https://www.businessinsider.com/china-luxury-retail-sales-slowdown-brands-fashion-2024-7