While the retail sector has performed well lately, the best growth is happening at the high end. With the global economy as strong as ever, and millions of people worldwide entering the middle class, especially in India and Asia, that trend is showing no signs of slowing down. And spends on luxury goods are growing.
Movado’s shares have been on the rise, gaining 60 per cent year to date. The group has a range of watches, jewelry and accessories at multiple price points. Its Swiss-made timepieces are sold both from its own branded retail stores and high-end department stores. Movado also manufactures goods under licensing deals with other fashion brands like Coach, Hugo Boss and Lacoste.
Tiffany continues to command premium prices for its jewelry and accessories in a business that has in many other cases become highly commoditized. Tiffany is the brand of choice for high-end jewelry customers. The company reported revenue growth in the Americas, Asia and Europe and improved gross and operating margins. It also announced the opening of four new retail stores, bringing the worldwide total to 314.
Burberry manufactures luxury clothing and accessories. It’s known for its checked plaid pattern. After a difficult year in 2015, Burberry is back on track and shares have nearly doubled in the past two years.