Shares of companies that make luxury accessories fell for a second day Wednesday, as investors reacted to a second devaluation of the Chinese currency, the yuan. China is a key growth market for a range of companies that make high-end clothing, handbags, shoes and leather goods, and the government’s latest intervention to weaken its currency sparked a fresh selloff in the sector. Italy’s Salvatore Ferragamo SpA shares fell 3.4%, extending Tuesday’s losses. China is Ferragamo’s biggest market, accounting for 19.5% of its annual revenue, according to FactSet. Shares of Italian shoemaker Tod’s SpA slid another 2.6%. Tod’s makes 21.6% of its global sales in China. LVMH shares lost another 3.8%, while shares of Kering Sa, the parent of fashion label Gucci, were down another 2.3%. From the U.S. Coach Inc. shares fell another 3% and Michael Kors lost 3.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News