It's time to add another point to Burberry's score in the race for luxury industry dominance. In the second quarter of Burberry's fiscal year, the company's retail sales were up 5%. Pretty good. This quarter was even better. Burberry reported an impressive 16% jump in retail sales. Stores that have been open at least one year saw sales increase by 10%. And the brand's wholesale business was bumped up by 5%. Accessories and outerwear were, unsurprisingly, big hits globally. What's really fascinating, though, is the company's success in stagnant Europe. While other luxury goods brands rely on emerging markets to make up for lackluster sales in Europe and the States, Burberry has upped its company-run operations in older economies, opening five new stand-alone stores last year, including additional doors in London, New York and Tokyo, Asia's only mature market. When you consider its awesome sales figures and savvy social media skills, it's obvious that there are few luxury companies out there on par with Burberry.
Woohoo! LVMH Sales Are Up, Like, A Lot
The reason conglomerates exist is so that when one area of the business is slowing, the others are hopefully growing. For LVMH, 2010 is proving to be a good year for not just a few, but all of its subsidiaries. Sales over the first half of 2010 totaled €9.1 billion, or about $11.8 billion, a 16% jump from the first half of 2009. Everything from wine and spirits to Louis Vuitton to Sephora to Donna Karan are performing well everywhere from the US to Asia. What's more, profits were up by a whopping 33% to €1.8 million, or around $2.3 million. With things looking this good, expect LVMH to do some buying and selling come August. Big luxury brands tend to do the deals at the end of summer--probably because Europe is on vacation, which means less snooping around by the press. So while PPR's vie for Burberry could be the biggest deal of the year, except something interesting from LVMH, too. Indeed, luxury brands are really killing it this year.