LONDON — Luxury goods have enjoyed a heady recovery in Europe from the dark days of 2009, and the good news looks set to continue into Christmas, with sales boosted by spending from Chinese tourists.But retailers caution that if the euro climbs sharply, some of that retail strength could diminish.Global sales in the luxury market—which includes such high-end goods as apparel, handbags, watches and cosmetics—declined 8% last year, according to consulting firm Bain & Co. Sales and earnings have surged since then, as have stock prices. The Dow Jones Luxury Index, which measures the performance of companies world-wide that derive a sizeable portion of revenue from luxury goods and services, has risen 34% in the last year. And a large proportion of the recovery has come from tourists in Europe taking advantage of a euro that in June hit its lowest level in four years.
By Kathy Gordon, Dec. 3, 2010 WSJ

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