Luxury maintains its lasting appeal… but for how long?
Despite growing fears of a global recession Europe’s luxury goods groups continue to post double-digit gains, although the effect of the current uncertainties in the USA are becoming all too evident.
Switzerland-based Richemont, which owns the Alfred Dunhill, Lancel and Montblanc brands, saw continued strong demand for its products in the third quarter ended December 31, posting underlying sales growth of 14% at constant exchange rates and an 8% increase at actual exchange rates at €1.673 billion.
Although, as has been the case with many other high-end companies, the strongest growth was recorded in the emerging markets of Asia Pacific (+23%), the company also reported 10% increases in both the Americas and Europe.
There are, however, still some worrying signs. The group saw a slowdown in sales in two of its most important markets (the USA and Japan) and while its Leather and Accessories division posted 7% growth at constant rates to reach €87 million, its Lancel brand actually saw sales slip at actual rates during the three months in question.
Meanwhile, Italy’s Aeffe, whose labels include Alberta Ferretti, Jean Paul Gaultier and Moschino also performed well, reporting a 13.4% increase in sales at constant rates for the full year and 10.2% at current rates, exceeding its target of 10%. While the company again saw strong growth in emerging markets such as China, its continued success has also been attributed to the fact that as a company it is not as reliant on the US market as many of its competitors.
