Shareholders in Aston Martin Lagonda [LON:AML] had a bit of a nightmare last year. The shares in the luxury car manufacturer fell off a cliff in September when Aston Martin Lagonda cut its sales guidance by 1000 units. It blamed supply chains and a slowdown in demand from China.
The China factor seems to be affecting a lot of companies in the European luxury goods sector which have relied on wealthy Asian buyers for their bottom line. This stretches from clothing to perfume and now seemingly to sports cars. Aston Martin said later deliveries on essential parts were also slowing down production with scope to impact the bottom line.
None of this made good reading for investors and it effectively torpedoed Aston Martin stock, which dropped from £1.69 to trade at just over a pound.
Aston Martin, Ferarri and Porsche
Aston Martin shares are still trading down 20% in the last six months. That said, there has been some buying activity recently, and ahead of numbers later this week, the stock is now up 11.6% YTD.
In the rest of this article we compare Aston Martin against peer Ferrari [NYSE:RACE]. Both companies are exposed to some of the same fundamental market forces. It is also worth having a look at Porsche Autombil Holdings.
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