Articles

Wealthy Consumers: ‘It’s Time to Live Again.’, WSJ

After more than two years of luxury shame, downsizing and feeling guilty, wealthy consumers may be crawling out of their fox holes (or, rather, into their fox stoles).Richemont’s better-than-expected earnings are one barometer, as the maker of Cartier watches and Chloe handbags on Monday reported a 2% rise in sales last quarter and a whopping 12% revenue jump in December alone.Kepler analyst Jon Cox said the recession in the watch industry “seems to be over.”That followed Tiffany’s 17% sales increase for the last two months of 2009. Our own Dow Jones Luxury Index, a k a the “Richistan Index” has more than doubled from its low a year ago and it is down only 20% from its 2007 peak.“I think we have reached the bottom,” said Christian Barbier, sales director at top-end watchmaker Parmigiani. “The consumer is getting used to working with a more difficult environment….It is time to live again.”The luxury rebound?
By Robert Frank, Jan. 20, 2010 WSJ

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