China Luxury Demand Reversal

July sales dropped >10% due to Beijing's tax crackdown, LVMH stock -30%, store closures, foot traffic decline. Three-speed market: US strong, China weak, Europe soft. LV exiting Guizhou province. However, new signals show green shoots from Kering, Burberry, LVMH citing K-shaped recovery and Gen Z demand. EY piece highlights aspirational consumers driving growth with three scenarios (craft, belonging, wellness). Moncler stock steady despite slowdown, reinforcing selective resilience. Bearish narrative moderating.