** Bernstein expects organic growth for luxury sector to decline 2% this year, compared to its previous forecast for 5% growth, after new U.S. tariffs came in "more extreme" than expected
** "What concerns us are the second- and third-order effects (of tariffs): the uncertainty, recent stock market crash, USD devaluation and threat of a global recession," it says
** Uncertainty, looming stagflation, and a stock market rout will weigh on global consumer spending, it adds
** At organic growth of -2%, Bernstein says it expects EBIT to decline 4-6% on average compared to 2024
** The broker adds the sector valuations are still far from a floor
** It notes that among "quality" names in its coverage, LVMH LVMH.PA is currently trading at its five-year trough
** On the other hand, Hermes HRMS.PA and Richemont CFR.S continue to trade well above their five-year and all-time troughs; it sees Hermes as the most defensive name in its coverage
(Reporting by Anna Pruchnicka)
((anna.pruchnicka@tr.com))
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