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PRIVACY
Retail & Consumer

º£½ÇÊÓÆµ stocks bounce back as high street brands Asos and Primark struggle

º£½ÇÊÓÆµ stocks have started to outperform high streets brands once again as investors bet on a luxury upswing.

Primark store in Newcastle(Image: Newcastle Chronicle)

º£½ÇÊÓÆµ stocks are once again outpacing high street brands as investors anticipate a luxury resurgence.

Brands that faced difficulties last year, such as Burberry and Kering, are making a comeback, while firms heavily reliant on physical stores like Primark are finding it tough, as reported by .

The top ten luxury retailers by market cap have seen their stock price increase by an average of 19 per cent so far this year.

In contrast, high street stocks have only risen by 11 per cent, with the share prices of JD Sports, Asos and Primark-owner ABF declining in the past two months.

The average performance of high street stocks has been buoyed by German retailer Zalando, which has seen a 23 per cent rise in its share price this year.

The e-commerce giant's share price has rocketed by 101 per cent over the past year, significantly outperforming its competitors.

"Over the past year, lower-cost high-street brands fared better in general as value-conscious consumers prioritised affordability amidst sticky inflation," said Lale Akoner, global market analyst at eToro.

"Yet some of the most recognisable names to British shoppers within our basket – Asos, JD and Primark – were not part of this growth. Instead, they were burdened by persistent inventory and profitability issues, highlighting the pressures facing fast fashion in a competitive, discount-driven environment."