Softening performance for a Nanjing-based lux mall in October

We hosted a channel check call on 9 November with an expert with deep knowledge of China's high-end consumption trends, who provided observations on a leading luxury shopping mall, Deji (unlisted), located in Nanjing of Jiangsu Province. The expert observed a softening sales performance by Deji in October, with mid-single-digit y-y sales growth, slowing down from the high-single-digit y-y sales recovery in September, mainly due to a low sales conversion rate as holiday tourism shifted toward experience-focused spending, and a diversion of local purchasing power as outbound travel lifted high-end spending abroad. The expert believes high-end consumption will still face uncertainties in 4Q26E and 2027E, as Chinese consumers' confidence is highly sensitive to macroeconomic shifts such as policy changes and stock market fluctuations. Performance diverged across brands in October: Dior and Chanel accelerated with high-teens and mid-teens y-y growth respectively, Louis Vuitton maintained LSD