Luxury Retail Stocks Plummet Worldwide As Wealthy Spent Less

Investors fear luxury brands have relied too heavily on well-off shoppers and will suffer as their spending slows.
Luxury companies lost $60 billion in value after sell-offs, with stocks in LVMH, Kering, and Hermès hit hard.
Sales are declining in the U.S., the industry's largest market, while China's economic troubles and travel restrictions threaten demand there.
Although the extremely wealthy may keep spending, middle and upper-income customers are at risk of cutting back during a global recession.
Luxury brands have so far endured the crisis well but now appear vulnerable without robust demand from wealthy tourists and aspirational shoppers.