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It's not just about tariffs; the Luxury Goods Industry is facing a perfect storm of a 'weak dollar + strong Gold.'
The threat of tariffs is just the tip of the iceberg. The depreciation of the dollar against the euro has directly weakened the profitability of European Luxury Goods companies in the USA market; the surge in Gold prices has increased the input costs for watch and jewelry manufacturers.
Luxury Sector to Report Soft Start to Year as Trade War Takes Center Stage -- Earnings Preview
Tariffs Are Clouding Luxury's Growth. Some Stocks Are Well Positioned. -- Barrons.com
Reported Friday, Birks Group At Risk Of Delisting After NYSE American Compliance Notice, Plans Recovery Strategy