Before the bell: luxury makes a comeback

Fashion house Prada posts strong sales growth, and Belgian student-housing firm Xior delivers solid results.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping will meet later this month in South Korea, the White House confirmed. Hopes for a potential trade deal between China and the United States gave Wall Street a lift. The S&P 500 gained 0.6%, while the Nasdaq rose 0.9%. Tesla (+2.3%) plunged at the start of the trading day after mixed quarterly results but managed to close in positive territory. In Europe, the average stock rose 0.5%, while Belgium’s Bel20 barely moved. The earnings season brought fireworks to stocks that had fallen out of favor — especially in the luxury sector, which took off after stellar results from Prada, whose sales climbed 9%. Kering (+8.7%) and Moncler (+2.9%) also rode the wave. 

The fireworks for Prada’s share price (+5.4%) came this morning. The Italian fashion house, listed in Hong Kong since 2011, was one of the day’s standouts. The Hang Seng Index itself rose 0.6%, and Japan’s Topix gained 0.7%. In the U.S., investors are awaiting results from Procter & Gamble. Back in Belgium, Xior reported its own results earlier this morning. The “student landlord” of the Brussels stock exchange saw profit rise 13% and net rental income increase by 7%. The net asset value per share stands at 38.82 euro, while the share price closed yesterday at 28.85 euro.

Dow cuts losses more than expected

The biggest gainer in the S&P 500 yesterday was the 128-year-old Dow, one of the world’s largest chemical producers. The stock jumped 13%, as the company reported a smaller-than-expected loss of 0.19 dollar per share, compared with 0.42 dollar the previous quarter. Cost savings and rising sales of new products helped deliver a better result than anticipated. Investors are now hoping the company can turn the corner. Over the past year, Dow’s share price has more than halved — from 69 dollar in May 2022 to 24.5 dollar yesterday evening.

Barco boards the AI train

Barco held an investor day yesterday to present its new strategy. The Kortrijk-based imaging company plans to build on its existing product lines while offering more software, services, and AI-driven solutions to its clients. Artificial intelligence, connected systems, and software are now central to the vision presented by CEO An Steegen. For example, surgeons will be able to use voice commands during operations to trigger real-time AI analysis or request assistance from another specialist. In the event sector, Barco has developed an AI tool for automated video direction, allowing a single operator to manage complex productions. Whether the stock price will now rise “artificially” remains to be seen — but the company clearly intends to keep up with the times.

Did you know…

that beef prices have surged over the past year — up 11% in the United States and 27% in the United Kingdom. The main culprits? Drought in the U.S. and rising demand for protein-rich red meat.

This article was translated from Dutch and was originally published on Spaarvarkens.be.