As reported by Business Week, luxury goods stocks are on the rise. Bulgari SpA experienced their steepest increase in more than two weeks, as they “rose 29 cents, or 5.1 percent, to 5.96 euros.” As for Burberry, they have reported a “23 percent gain in annual profit on increased sales of high-margin accessories and shoes.” Earlier this year Burberry surged 7.6%, and announced plans to accelerate store openings later this year due to their annual profit increase.
For Burberry this profit rise comes at a time when shareholders may voice their opinion about executive pay packages, as 13% of last years voted shares were cast against the companies executive pay policy. Although shareholders are happy with the success of the brand, it may make them a target; they want sustainable success, but not at all costs.
Eyewear makers Luxottica Group experienced an increase of 51 cents, or 2.8 percent, to 18.87 euros, whilst Italian luxury goods group Tod’s “gained 2.05 euros, or 4.1 percent, to 52 euros.” Also in the eyewear market, Safilo Group, “surged 38.5 cents, or 5.4 percent, to 7.59 euros.”
Image credit: burberry.com
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