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Luxury retailer Burberry released lower-than expected earnings results on Wednesday, adding to growing anxiety about China’s impact on the sector. Despite this, one analyst sees bright spots in high-end retail.
Burberry , which derives 37 percent of its revenue from the Asia-Pacific region, saw its growth rate cool due in part to a slowdown in China’s growth. However, Erika Maschmeyer, an analyst at Robert W. Baird, emphasized that China is not a new issue, and much of the concern is already baked into luxury retail stocks.
“From an investment standpoint there are really attractive opportunities within the sector,” she said. “In particular, I think that within affordable luxury there is an opportunity.”
So far, Maschmeyer told CNBC’s “Closing Bell” that she is seeing a softer landing for the sector, rather than a hard one.
She cited Coach as an example of an affordable high-end retailer that has seen growth recently from entering China. The New York City-based company is growing rapidly in the market, and Maschmeyer thinks it can gain further market share, especially in the men’s segment.
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