As prices have tumbled from February highs, shares in listed luxury companies have all the charm of an excellent investment opportunity, with the added appeal of a pandemic-proof balance sheet.
Articles on the subject: Economy
Recently published statistics reveal a curious state of affairs: volume sales of Swiss watches are falling, but value and employment are increasing. In other words, the higher the price, the better the business.
During the crucial end-of-year period, Richemont increased sales by 6%. This is excellent news for the group, which has more than made up for the headwinds in Hong Kong that are buffeting every segment of the luxury market.
At a special meeting this February 4th, stockholders of Tiffany & Co will vote on the merger agreement with LVMH for $16.2 billion. With Bulgari and Tiffany under its belt, the French luxury giant is intent on dominating the global jewellery market.
An ongoing drop in volume exports, an inexplicable intervention by the competition watchdog, problems in Hong Kong, individual exhibition strategies... the face of the Swiss watch industry is changing in 2020.
The gap continues to widen between luxury watches and entry-level, resulting in a slight increase in total export value alongside a drastic decline in volume. Suppliers suffer as the sector becomes increasingly consolidated.
Concerns over trade in a post-Brexit Britain haven't prevented the UK market from performing well these past months, aided by sterling's weakness. As the country heads towards its latest deadline, watch brands are making sure they are prepared for every outcome, including a no-deal scenario.