China Virus Scare Sends Shudder Through European Luxury Goods Sector

China Virus Scare Sends Shudder Through European Luxury Goods Sector
A woman walks past a Gucci advertising poster as shoppers and anti-government protesters gather at New Town Plaza in Sha Tin, Hong Kong, China on Nov. 3, 2019. Shannon Stapleton/Reuters
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MILAN—European luxury stocks slumped across the board on Jan. 21 on fears that the coronavirus outbreak in China could hurt sales of high-end brands that had managed to weather months of protests in Hong Kong.

Chinese shoppers account for 35 percent of global luxury goods sales and 90 percent of last year’s growth in the market, according to consultancy Bain & Company, which produces closely followed forecasts for the sector.