JPM sees luxury trends staying muted in Q4
** J.P.Morgan expects trends to remain muted for European luxury names in Q4 due to continued China softness and despite possibly better consumer confidence in the U.S. after elections
** Q3 performance was worse than feared and JPM says it expects broadly similar trends in Q4 vs Q3
** "No one was immune, including the most defensive and highest quality players," it says on soft trends with Chinese consumers, but adds that elsewhere the trends were more mixed depending on the company
** It sees flat organic sales growth for the sector in Q4
** "Besides top-lines, profitability should also be a growing focus for investors going into FY updates, and the risk to margins in the context of sales flat at best" - JPM
** It sees Prada 1913.HK as an outlier, pointing to accelerating momentum at Miu Miu, resilience at the Prada brand and margin expansion
** Among sectors, it stays structurally more positive on jewellery vs soft luxury, and confirms its relative preference for Richemont CFR.S vs the rest of the sector
Reporting by Anna Pruchnicka
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