From luxury brands to carmakers, European companies are being hit by China’s economic slowdown. Companies that rely heavily on demand in the Asian economic giant are facing problems.
Hugo Boss, Burberry Group and Daimler Truck Holding are among the household names whose profits have been hit as customers there have become more cautious. LVMH joined the growing list on Tuesday evening, reporting that sales in the region, which includes China, fell 14% in the second quarter.
Spending less on European goods has serious consequences for profits, creating risks for stock prices, company valuations and even jobs. Swatch Group, for example, saw sales in China fall 30% in the first half and is cutting production.
