In June 2014, The Elliott Wave Theorist reiterated a forecast:
Luxury will go out of fashion.
This is already happening.
EWI's European Financial Forecast has been telling subscribers about the financial woes that have befallen the world's luxury retailers.
Read this excerpt from the May 2017 European Financial Forecast:
The European Financial Forecast has been following the world’s luxury retailers and their fast-escaping optimism. In August 2016, for instance, we showed subscribers the sinking share prices of Ralph Lauren and Prada, two high-end fashion houses that investors had suddenly turned against. Last month, Prada reported its lowest full-year profit since the company went public in 2011, and Ralph Lauren, which has suffered nine-straight quarters of same-store sales declines, just announced it will shutter its flagship Polo store on New York’s Fifth Avenue. According to Fox Business, “The actions are part of the struggling retailer’s Way Forward Plan that was outlined in June.” (4/4/17)
We can say this: The way forward will be filled with pitfalls. At this point, the weakness seen in high-end stores seems to be trickling downhill. CNN Money ran this headline about a new research report compiled by Zurich-based bank, Credit Suisse:
Stores are Closing at an Epic Pace
“Barely a quarter into 2017,” says the report, “year-to-date retail store closings have already surpassed those of 2008.” The blue bars on this accompanying chart show that, at the current pace, retail closures will exceed 8,640 by year end, far outpacing the 6,163 stores that shuttered in 2008. That was the worst year for retail closures on record, and the steady pace of today’s closures argues emphatically that the economic recovery is on especially flimsy ground.
Prepare for what EWI sees ahead.
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