The pandemic and soaring inflation have failed to take the shine off luxury brands, from Louis Vuitton to Gucci and Cartier, as the sector hiked prices to notch up stellar profits.
Luxury brands have responded to the pandemic by hiking their prices and actually look more desirable to their customers.
UBS analysts estimate that top brands such as Louis Vuitton, which is owned by industry leader LVMH, have raised their prices two-and-a-half times higher than the inflation rate over the past 20 years.
LVMH bagged a record €64 billion ($72 billion) in sales and €12 billion in net profit last year, both exceeding pre-pandemic levels.
The French company also owns a broad range of spirits, perfume, jewelry and cosmetics products.
Kering - which owns Gucci and Yves Saint Laurent - also beat its pre-COVID-19 levels to book a net profit of €3.2 billion on sales of €17.6 billion. Herrmes chalked up profits of €2.4 billion on sales of 9 billion euros.
Swiss group Richemont, which owns Cartier and runs its business year from April to March, said it booked sales of 5.6 billion euros in the third quarter alone, an increase of 38 percent over the corresponding period of 2019.
