Consumer confidence today is under pressure from the pandemic, inflation, war in Eastern Europe, and policy tightening from the Federal Reserve, but luxury brands are flourishing.
Top luxury companies have reported strong growth in recent quarters, with acceleration seen in most key geographies. In addition, margins for dominant brands remained high, reflecting resiliency of demand for their enduring products, as well as the power of their operational and financial models. Big brands are getting stronger in this environment. For example, the Q2 results of LVMH - a key holding in the luxury space - recently beat expectations, with revenues climbing 27%. Robust US growth and a recovery in Europe helped LVMH offset declining revenue in Asia, where lockdowns in Chi...
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