From luxury brands to car makers, European companies are taking a hit from China’s slowdown, and more trouble is coming for businesses heavily reliant on demand in the Asian economic giant.
Hugo Boss, Burberry Group and Daimler Truck Holding are among the high-profile names whose bottom line has been hurt by customers there turning more cautious. LVMH joined the growing list late Tuesday, reporting that sales in the region that includes China dropped 14% in the second quarter.
Less money spent on European goods has severe implications for profits, as well as creating risks for share prices, company valuations, even jobs. Swatch Group, for example, saw China sales plunge 30% in the first half and is cutting production.