Here’s Why Kering Is Still a More Promising Investment Than P&G
- Prospects for luxury companies still attractive: Amundi CPR
- Investors have been dumping luxury-good stocks in recent weeks
Photographer: Akos Stiller/Bloomberg
It’s better to own shares in LVMH or Gucci owner Kering SA than in companies such as Procter & Gamble Co. because prospects for luxury goods remain more attractive than those of consumer staples in spite of slowing Chinese demand for watches and pricey handbags, according to a portfolio manager at Amundi SA’s CPR.
Brands such as Gucci “have a top-line dynamic that you don’t have in companies making deodorants or soaps, like Procter & Gamble, given their stronger pricing power,” Anne Le Borgne, thematic equities portfolio manager at CPR, said in a phone interview. Luxury-goods makers will continue to be supported by demand from younger consumers, in particular in China, where the middle class is set to grow in the years to come, she said.