Italian (Borsa Italiana) Luxury Industry Analysis

Industry Valuation and Performance

Has the Italian Luxury Industry valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 23.6x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Luxury industry have grown 7.6% per year over the last three years, while revenues for these companies have declined 2.0% per year. This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the Italian Luxury industry?

Industry PE: Investors are most optimistic about the Apparel, Accessories and Luxury Goods industry which is trading above its 3-year average PE ratio of 23.9x. This is likely because analysts are expecting annual earnings growth of 17%, which is higher than its past year's earnings decline of 4.7% per year. Meanwhile, investors are most pessimistic about the Textiles industry, which is trading below its 3-year average of 35.4x.

Forecasted Growth: Analysts are most optimistic on the Footwear industry, expecting annual earnings growth of 131% over the next 5 years. Meanwhile, the Apparel, Accessories and Luxury Goods industry is expected to see its earnings grow by 17% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?