Morgan Stanley Sees China Luxury Struggling

Morgan Stanley MS on Monday released a note highlighting the collapse in growth for Gold/Watches/Jewlery in China. Q2 growth dropped to 1.6 percent from the 27 percent growth reported for Q1. Specifically looking at Swiss Watch exports by price segment, low end price points are getting "less bad" and mid-high end growth has deteriorated over the April to June period.
Excluding Burberry, luxury brands have seen a broad miss on earnings:

As for global picks trading in the US Morgan Stanley likes:

Michael Kors KORS

Nike Inc NKE

And Morgan Stanley doesn't like:

Coach COH

Currently the MSCI World Brands Index trades at a premium ciompared with the MSCI World Index by roughly 22 percent YTD and traders will be looking to see the luxury brand bull run finally end.