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| Luxury brands riding high on stock market Posted: 09 Jul 2011 11:02 PM PDT PARIS: Purveyors of luxury and indulgence flirted with record stock market valuations this week as investors looked past a litany of bad economic figures and the eurozone debt crisis to focus on the fundamentals.
Asia shines like a beacon for the companies, where a fast growing middle class is chasing the good life as emerging economies in China, India and across the region throw off wealth as never before. Upcoming first half results are also expected to be stellar, with many expecting an exceptional performance from the likes of LVMH, which runs a stable of global brand names from perfumes to wines and champagne.
The sector does look promising. According to consultancy Bain & Company, the global market for luxury goods and services should grow by eight percent this year, pushed by 25 percent gains in China and 15 percent in the rest of the Asia Pacific. Global banking giant HSBC — which knows Asia first hand — forecasts a 15 percent increase in demand for luxury goods in 2011 and an 11 percent jump in 2012.
Even Japanese sales have rebounded since the devastating March earthquake caused such loss of life and damage to the economy, HSBC analysts said. The luxury sector, once seen as vulnerable to the first signs of trouble, appears to have taken on an extraordinary resilience in recent years, as shown by its performance after the start of the global economic slump in 2008. "Brands got through the crisis, sales fell by only 4.4 percent in 2009," holding up while other sectors went through the floor, Thomas Mesmin of CA Cheuvreux said. Better yet, luxury companies used the opportunities offered by the world recession "to refocus on leading products," said Arpels. Bigger companies have built up their cash resources and are on the acquisition trail, another feature drawing in investors. Among recent deals was the LVMH buyout of Bulgari in March and the building up of a major stake in Hermes while fierce rival PPR acquired a controlling stake in Sowind Group, the Swiss watchmaker. Luxury brands have caught the eye of investment funds too. Investment company Eurazeo bought up 45 percent of the Moncler luxury textile group in early June and Jimmy Choo, the shoe company, was snapped up by the Labelux Group. "Even if the fundamentals are solid, speculation is going strong in the sector," said Mesmin of Cheuvreux, citing the case of Hermes. "Investors are betting on an LVMH takeover at a high price," Mesmin said, noting that Tod's and Burberry were benefiting from similar speculative interest. The gains have been so sharp that some analysts think they may be overdone, especially given the sharp rise in gold and silver prices and other high value raw materials. -- AFP Full Feed Generated by Get Full RSS, sponsored by USA Best Price. |
| British royals given Hollywood star treatment Posted: 09 Jul 2011 10:58 PM PDT LOS ANGELES: Prince William and his wife Catherine outshone even Hollywood's brightest stars Saturday, as Britain's future king lobbied for up-and-coming British actors in the home of the US film industry.
Hundreds of fans gathered outside the Belasco Theater in downtown LA, cheering as the usual celebrities arrived for the red carpet entry — but screaming the place down when William and Catherine arrived. "They're not just actors, their position is so much greater," said LA local Sarah Pijuan, 28, after meeting the British royal couple who stopped to shake hands and talk to some of the fans.
William is president of the British Academy of Film and Television Arts (BAFTA), which hosted the black-tie dinner. Earlier in the day they had wowed the crowds at a charity polo match in Santa Barbara, an hour north of Los Angeles up the Pacific coast — especially after the prince's team won the afternoon's tournament. Tickets for the one-off event went for 400 dollars — 4,000 for the privilege of lunching with the royal couple before the on-field action.
The 29-year-old future king drew whoops of approval when he took the field under a blazing West Coast sun at the Santa Barbara Polo and Racquet Club, as Catherine watched admiringly from the stands. "They're great role models for young people, they're elegant and great ambassadors for their country," said Santa Barbara resident Victoria Hines, 65, dressed up for the exclusive event an hour north of Los Angeles. Catherine's clothes have also impressed — she reportedly brought 40 outfits for the 12-day trip. On Saturday she was in a silver and marble grey dress by Jenny Packham to the polo, and a light blue dress to the evening BAFTA event. The Duke and Duchess of Cambridge — as they have been since marrying in London in April — arrived in Los Angeles on Friday for the weekend trip following a nine-day tour of Canada. Officially, the Californian mini-tour will aim to "contribute to deepening and strengthening the multi-layered links between the United States and the United Kingdom," according to a British official briefing. Unofficially, all eyes have been on who they meet — after David Beckham and British writer-broadcaster Stephen Fry on Friday, Saturday's celebrity crop included Jennifer Lopez and Jack Black. On Sunday, they visit "Skid Row" in downtown to visit the Inner-City Arts school, a nonprofit academy that provides free classes in visual and performing arts to children from poor neighborhoods. Later Sunday they attend a job fair for military veterans at Sony Studios in Culver City, before leaving Los Angeles to return to the United Kingdom after their 12-day north American trip. -- AFP Full Feed Generated by Get Full RSS, sponsored by USA Best Price. |
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