Luxury stocks across Europe tumbled after a slowdown at LVMH spooked investors.
The French giant, whose brands include Louis Vuitton and Tiffany, said sales in the three months to the end of September rose by just 9pc to £17.2bn – far lower than the 17pc increase in the previous quarter – and LVMH shares fell 6.5pc in Paris.
The figures sent a chill through the luxury goods sector with Burberry down 3.2pc, or 58.5p, to 1777p in London while Mulberry slid 2.4pc, or 5p, to 200p and Watches of Switzerland dropped 5.8pc, or 31p, to 502.5p.
Across Europe, Gucci owner Kering fell 1.3pc, or 5.8p, to 428.3p and Cartier and Montblanc parent Richemont retreated 4pc on the Swiss stock exchange.
The French giant, whose brands include Louis Vuitton and Tiffany, said sales in the three months to the end of September rose by just 9pc to £17.2bn
Victoria Scholar, head of investment at Interactive Investor, said: ‘While luxury has been a strong sector lately, given that customers with high disposable incomes are relatively sheltered from cost-of-living pressures, results from LVMH appear to suggest that the blockbuster period for luxury is starting to fade.
‘Luxury brands are dealing with slower demand from the US and Europe as well as China’s bumpy post-Covid recovery.’
The FTSE 100 dipped 0.1pc, or 8.18 points, to 7620.03 while the FTSE 250 fell 0.5pc, or 91.43 points, to 17876.24.
Safestyle initially rose after the double glazing giant confirmed reports it is exploring a possible sale. The group has hired advisory firm Interpath Advisory for guidance on options such as raising fresh funds and a potential sale.
Several parties have declared their interest and further talks will be held, Safestyle added. Shares climbed to 4p but later fell back 3.3pc, or 0.08p, to 2.35p.
The firm has endured a torrid year and last month warned results will be worse than feared amid a slump in demand. The stock has fallen 90pc this year.
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Eneraqua Technologies, which advises on ways to become more energy efficient, crashed 58.3pc, or 53.9p, to 38.6p after warning on its results.
Clients have asked for projects to be delayed and changed spending habits as social housing landlords face a squeeze.
Revenue and profit for the year to the end of January 2024 are likely to be ‘substantially below expectations’.
It said it was ‘prudent’ to expect lower revenues and profits in 2025.
Mitie rose on the mid-cap index after the firm, which provides cleaning and catering services to the NHS, said an increase in projects meant its revenue jumped 11pc to £2.1bn in the six months to the end of September.
It upgraded its profit forecast for the year to the end of March 2024 to £190m – higher than the £173m analysts expect. Shares climbed 3.8pc, or 3.8p, to 102.8p.
Investors jumped aboard on First Group after the company said its profit for the year will beat its previous expectations by around £14m and £20m.
It followed stronger than expected demand in its rail division, driven by increased leisure travel in the summer.
Trading in its bus division in the 27 weeks to the end of September was also slightly ahead of expectations. The shares increased 3.7pc, or 5.4p, to 151.9p.
Strong demand for Qinetiq services and products led to the defence group raking in a record first-half order intake worth around £950m. As a result, it remains on track to meet its full-year expectations. Shares rose 1.4pc, or 4.6p, to 329.2p.
But Page Group headed in the other direction after the recruiter warned profit for 2023 will be between £125m and £130m, down from a previous forecast of £137.6m, as economic turmoil took a toll in the UK, US and Asia.
It also warned of a ‘heightened uncertainty in the short-term’ following a slower end to the quarter that ended on September 30. It sank 2.3pc, or 9.8p, to 414.2p.
Developer Watkin Jones said it ran up extra costs to complete projects, meaning revenue for the year to the end of September should exceed £400m while profit should be break-even. It made £2m profit in the first half. Shares fell 7.6pc, or 2.65p, to 32.2p.
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