Ferrari11 Nov 2024 10:57
🏎️ Luxury goods slump catches up with Ferrari (Barrons)
What’s our take?
Their F1 team is on the rise, but the same can’t be said for Ferrari’s share price.
Ferrari’s stock slipped 5.4% on Tuesday, despite reporting better-than-expected results for Q3. While the results said one thing, investors were undoubtedly concerned by a decrease in car shipments and weakened demand in China.
Ferrari’s adjusted earnings rose 12.5% compared to last year, but shipments came in below the mark. Total car shipments fell 2% to 3,383 units, which isn’t anything significant, but the more worrying figure is that shipments to mainland China, Hong Kong and Taiwan dropped 29%.
China’s post-COVID recovery has been a little sluggish, which has dragged down consumption of luxury goods in the region, and with how popular luxury brands are in China, this is expected to weigh heavily on the sector's earnings.