Luxury lull: The brands still worth their while

LUXURY BRANDS

The luxury sector will face a slowdown in growth over the next few years, warns Douglas McNeill, investment director at Charles Stanley Direct.

The luxury goods sector has been a happy hunting ground for investors for some years now. But the luxury pickings may not be quite so rich in future, as the contrasting fortunes of certain major brands begin to emerge. Up until now, luxury’s credentials as a growth sector have been beyond question. According to figures from consultancy firm Bain, the number of luxury goods buyers around the world has increased at a compound average of 8% per year since 1995. This is an impressive rate by anyone’s standards, and is reflected in the recent returns to equity investors.  Since the star...