Retailers, consumers and prices
Check Out Line: Luxury goods execs discuss global demand
Check out what executives at luxury retailers around the world are saying about consumer demand.
Early feedback from the Reuters Global Luxury Summit, which gathered top executives from Asia, Europe and the United States, sounds positive. Some executives even predicted that the sector will rebound this year after suffering during the weak economy.
Paris-based luxury fund SG Gestion, for instance, said watches and spirits are set for a solid comeback, with LVMH, Swatch and Richemont topping the list of companies with the biggest upside.
Meanwhile, sales at British luxury fashion brand Jaeger have grown strongly, helped by a booming online business that is set to double in size over three years. Italian fashion house Valentino is building up its business and Japanese upscale jeweler Mikimoto and Japanese cosmetics firm Shiseido are eyeing growth in China.
Luxury goods groups have been enjoying a strong rebound since January, but dark clouds remain as the European debt crisis is a threat to discretionary spending. Nevertheless, global luxury sales are expected to rise 4 percent this year after falling 8 percent last year, according to Bain & Co. For more stories from the United States, Europe and Asia, check out the summit web page.
This week also will provide another snapshot into the health of the U.S. economy as May retail same-store sales will be reported. The results are expected to be up, but spending is still seen as erratic.
Also in the basket: