Pucci sets, branded beach clubs and Aperol Spritzes aplenty. If our Instagram feeds are anything to go by, Euro summer is in full swing. But luxury’s latest spate of earnings paints a different picture. Brands are noting lower purchases from tourists, meaning lower revenues overall for the quarter.
Ferragamo, Prada Group, Burberry, Moncler and Kering all attributed EMEA (Europe, the Middle East and Africa) second-quarter revenue declines to lower-than-usual touristic spending in Europe. Moncler saw an 8 per cent decline in the region for the second quarter, as executives noted declines in tourist flows from both America and Asia. “As a reminder, Q2 and Q3 are the quarters with the highest penetration of tourism usually in Europe,” said Roberto Eggs, Moncler Group chief business strategy and global market officer. It’s not just Europe, either. Japan’s performance is also on the decline this quarter, thanks to a decrease in Chinese visitors to the country.
