Andrea Felsted 5.0 5 ideas

Kering has an issue with Gucci, and the response to Gucci's new designs may not be as exciting as for other luxury brands, so sales may not be going in the right direction.

Hermès may be more cyclical than previously thought because resale values for Birkin and Kelly bags are moderating, indicating that the brand might be subject to market whims, and there are questions about whether it can continue to deliver.

LVMH's sales show improving demand in key markets like the U.S. and China, indicating resilience despite the war, making it relatively attractive.

Hermes may be losing its desirability and premium valuation due to new competition from Chanel's designer and weakening resale values, raising concerns about its resilience.

Nike issued a gloomy outlook, expecting revenue to decline 2-4% in current quarter and low single-digits for the year, citing Middle East disruption, China weakness, and a consumer shift away from casual athleisure. The new CEO is focused on performance categories, but the core fashion-casual segment is suffering. This weakness is also reflected in Europe. The combination of macro headwinds and a challenged product cycle makes the stock unattractive in the near term. A major fashion hit could revive the brand and consumer interest.