zaterdag 1 september 2012
What are the best luxury stocks ?? Global Sales of Luxury Goods Robust
What are the best luxury stocks ?? Global Sales of Luxury Goods Robust Global Sales of Luxury Goods Robust Luxury goods firms in Europe reported robust retail sales in Europe, Asia and emerging markets Friday bucking the downturn seen in other retail sectors. French luxury leather goods retailer Hermes (FR:RMS) and Italian designer shoemaker Ferragamo (FF:S9L) 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 in Europe. Bonno van der Putten, Monarch Equity, and retail luxury goods expert, said “Hermes International, a maker of designer bags and silk scarves, will be raising its annual growth target”. Van der Putten states that the company will increase the target from 10 to 12% after its profits for 1-H of Y 2012 grew 28% to 335.1-M Euros (US$418.81-M). Bonno van der Putten also said that Hermes’ sales in Greater China rose 25%, and sales in Europe grew 10% in 1-H despite worries about the region’s debt crisis and recession. Sales rose 22% to 1.591-B Euros, up from 1,305-B Euros a year ago. Likewise luxury firm Salvatore Ferragamo said second-quarter net profit rose 22.5% to 55.9-M Euros (US$70.1-M), up from 45.7-M Euros in 2011. Sales rose 16.7% over the prior year. Despite the good news shares of Ferragamo were down 1.8% in trading in Milan over worries about a drop in the company’s margins. Shares of Hermes were up 2.6% in Paris. Bonno van der Putten attributed that successful sales figures of the luxury goods retailers relates to continuing demand for luxury goods in Asia, and even in Europe, despite the economic slowdown in both regions. Van der Putten remains confident that growth of the companies will continue in Asia but also in other parts of the world . Bonno said that the Asia region has been the source of growth for many years and that there is huge potential in terms of numbers of consumers. Van de Putten doesn’t really see any worries over Asia’s slowdown and remarked that Singapore, Hong Kong but also London are still Top five locations worldwide for many luxury goods retailers and that luxury retailers retain older, loyal customers as well as attracting younger ones. A lot of luxury brands are becoming younger and trendier and therefore perhaps also more aggressive in terms of marketing and this maybe one of the reasons for the very substantial improvement of the results of luxury goods retailing this year.