Luxury Goods Sales Are Breaking Records

Sales of luxury goods are doing quite well, according to a recent report from LVMH, the manufacturer of Louis Vuitton bags and accessories and Dom Perignon champagne.  The world’s largest luxury goods purveyor, LVMH reported a 53 percent increase in net profits to €1.1 billion ($1.4 billion) on sales of €6.9 billion in the 1st half of 2010.  According to Bernard Arnault, LVMH chairman, the increase is due to his company’s status as “pioneer, and its early implantation in regions with strong growth.”  Similarly, apparel notables Burberry and Hermes experienced a 27 percent increase in sales during the 1st quarter.  Luxury cars like BMW and Porsche once again are in strong demand.  However, Pam Danziger, president of Unity Marketing, urged caution.  “We expect the pace of growth in luxury consumer spending to remain modest over the next two quarters,” Danziger said.