
While shoppers at Bergdorfs and Saks might still be spiriting their purchases out the door in Medium Brown Bags, new reports on the status of the luxury-goods industry show that they’re buying as much—if not more—than ever. According to profits from two of the leading conglomerate corporations in the business. While the economy may still be finding its footing with regard to financial stability, luxury's profits so far this year are staggering. "LVMH Moet Hennessy Louis Vuitton SA, the world’s largest maker of luxury goods, reported first-half profits that beat analysts’ estimates as sales of fashion and leather goods accelerated in the second quarter,"
says Business Week. The monolith, which includes Christian Dior, Louis Vuitton and Moet Hennessy among other luxury brands, is reporting a whopping 53% (or $1.36 billion) increase in returns thus far in 2010. And, while shoppers in fashion capitals across the globe helped thwart the increase in profits, China is the leading catalyst for such a drastic post-recession success story. "On a local currency basis, sales gained 18 percent in the U.S., 21 percent in Asia, and 11 percent in Europe," the company said at a press conference.
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