Luxury Goods Sales Defy Global Slowdown
Luxury goods firms in Europe reported booming retail sales in Europe, Asia and emerging markets on Friday bucking the downturn seen in other retail sectors.
French luxury leather goods retailer Hermes (Euronext Paris: RMS-FR) and Italian designer shoemaker Ferragamo (Frankfurt Stock Exchange: S9L-FF) both reported double-digit increases in profits and revenues in their latest report to investors as demand for luxury goods remained robust in Asia - and even in Europe.
Hermes International, a maker of designer bags and silk scarves, said it was raising its annual growth target from 10 to 12 percent after its profits for the first half of 2012 grew 28 percent to 335.1 million euros ($418.81 million).
The company said sales in Greater China rose 25 percent, and sales in Europe grew 10 percent in the first half, despite worries about the region’s debt crisis and recession. Sales rose 22 percent to 1.591 billion euros, up from 1,305 billion euros a year ago.
Likewise luxury firm Salvatore Ferragamo said second-quarter net profit rose 22.5 percent to 55.9 million euros ($70.1 million), up from 45.7 million euros a year ago. Sales rose 16.7 percent over the previous year.