American luxury goods makers are proving particularly vulnerable as the Coronavirus pandemic erodes spending on non-essential goods and keeps shoppers away from fashion boutiques. Amid historic market decline, a host of luxury companies have seen sharp plunges that have outpaced the general market: Capri Holdings., owner of Michael Kors and Versace, is down more than 40 per cent this week, while Coach and Kate Spade owner Tapestry Inc. has fallen by about 31 per cent and Ralph Lauren Corp. has declined 27 percent. PVH Corp., the owner of Calvin Klein and Tommy Hilfiger, has lost almost 40 per cent.

Data is piling up that US shoppers are stocking up on food and health items as they prepare for an extended period of working from home and social distancing. Luxury retailers, meanwhile, are joining apparel chains and department stores as net losers from the outbreak.

Reflecting the broadening pessimism, Deutsche Bank downgraded seven apparel and footwear stocks including Ralph Lauren, Tapestry and Capri. The bank also lowered its investment rating on Tommy Hilfiger and Calvin Klein owner PVH. Deutsche Bank cited concerns about supply chain disruptions, falling tourism and the potential that slower demand for luxury goods is sustained.

Luxury companies in particular could see their earnings hurt. These companies could also see a more limited recovery upon market stabilisation. Citigroup Inc. also downgraded a long list of apparel and luxury companies, including Tapestry, Capri, PVH, Ralph Lauren, Signet Jewelers, Abercrombie & Fitch Co. and Steve Madden, citing a weaker demand environment.