<<Published January 27, 2023 by Philip Elmer-DeWitt


Evercore: China's luxury market is rebounding. Good news for Apple

"In Macau, where the Chinese can now travel to, the change is quite spectacular."

From a note to Evercore clients by analyst Amit Daryanani that landed on my desktop Thursday:

ALL YOU NEED TO KNOW: Luxury retailers are signaling a major rebound in Chinese demand after a weak 2022. LVMH reported earnings last night and was upbeat on its China outlook indicating China demand has been very strong so far in January. LVMH also flagged a full recovery in Macau: “In Macau, where the Chinese can now travel to, the change is quite spectacular. The stores are full. It's really come back very, very strong pace.” Burberry noted last week that it is seeing “very promising” signs of recovery and they are “very positive about the early signs”. Richemont (Cartier owner) provided similar sentiment noting “stores have reopened and traffic has come back, and we are experiencing a strong retail rebound pre-Chinese New Year”.

We think this is encouraging for Apple as iPhone sales should generally track the broader luxury market in China.

Net/net: We expect the lost Dec-qtr sales to be recovered in Mar-qtr and the data points on increases our confidence that Apple’s Mar-qtr guide will be comfortably ahead of consensus.

Maintains Outperform rating and $190 target.


My [PED’s] take: Chinese on vacation in Macau with money to burn. I can just imagine.>>


https://www.ped30.com/2023/01/26/apple-china-luxury-rebound/


LVMH is Moët Hennessy Louis Vuitton, specializing in luxury goods, headquartered in Paris.