Rich people need their LV, no matter what kind of market we’re in.
It’s interesting to see that the luxury brand market isn’t all that touched by the global economy slowdown, oil prices, mortgage problems, the pollution from China. LVMH Moet Hennessy Louis Vuitton SA group announced an actual increase in sales in their interim reports, and its rising in part thanks to us in Hong Kong and in China:
Net income climbed 7 percent to 891 million euros ($1.4 billion) from 834 million euros a year earlier, the Paris-based company said today. That surpassed the 857 million-euro median estimate of nine analysts surveyed by Bloomberg. Chairman Bernard Arnault confirmed the company’s forecast for a “tangible increase in results this year” and said he would increase prices further in the U.S. and Japan.
Revenue is rising between 20 percent and 30 percent in Asia outside Japan, according to Armando Branchini of Milan-based consultancy Interbrand, making LVMH less vulnerable to slowing U.S. and European economies and gains by the euro. Bags co- designed for Louis Vuitton, LVMH’s top-earning brand, by designer Marc Jacobs and U.S. artist Richard Price fueled demand.
So, we guess even with our markets down this week, it still hasn’t and probably won’t affect our shopping habits. Read more of the story from Bloomberg here.