{"id":38648,"date":"2013-05-30T10:05:39","date_gmt":"2013-05-30T14:05:39","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=38648"},"modified":"2013-05-30T10:05:39","modified_gmt":"2013-05-30T14:05:39","slug":"its-good-times-for-the-rich-luxury-spending-surging-worldwide","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/05\/30\/its-good-times-for-the-rich-luxury-spending-surging-worldwide\/","title":{"rendered":"It\u2019s Good Times for the Rich: Luxury Spending Surging Worldwide"},"content":{"rendered":"

\"It\u2019s<\/a>Consumer spending on luxury goods continues to ramp up.<\/p>\n

The easy monetary policy by the Federal Reserve has created a whole new generation of millionaires, or the \u201cnew rich,\u201d as the stock market propels to new records.<\/p>\n

The spending on high-end goods in the retail sector was further confirmed on Tuesday after high-end jeweler Tiffany & Co. (NYSE\/TIF) delivered an impressive quarter, driven by a rise in global spending. The fact that spending on luxury goods is on the rise globally is bullish.<\/p>\n

Recall my recent Profit Confidential<\/i> article in which I stated that the rich continue to spend (see \u201cHigher Taxes: Who Cares? Not the Rich<\/a>\u201d). The Shullman Luxury and Affluence Monthly Pulse, which is an excellent metric detailing the spending habits of consumers making over $250,000 annually, suggested that higher taxes will not impact the spending patterns of 61% of those earning over $500,000 annually. (Source: Frank, R., \u201cWealthy Say Higher Taxes Don\u2019t Hurt Spending,\u201d CNBC, March 27, 2013.)<\/p>\n

It appears Tiffany is proving the research correct.<\/p>\n

In the first quarter, Tiffany reported a nine-percent rise in its worldwide sales to $895 million. If you looked at the sales numbers on a constant-exchange-rate basis, the increase was 13%. Interestingly, the sales increase was worldwide, which bodes well for Tiffany.<\/p>\n

In the main Americas region, sales increased six percent to $408 million, representing 46% of total sales. I feel this allocation will shift, as Tiffany<\/a> expands its presence in Asia, which currently accounts for about 41% of total sales.<\/p>\n

The Asia-Pacific region including China but excluding Japan reported impressive sales growth of 15% year-over-year to $223 million. Tiffany\u2019s key comparable store sales jumped nine percent.<\/p>\n

The results from Japan were affected by the weak yen, which made the currency translation impact quite noticeable. Yet sales still managed to rise two percent to $145 million. On a constant-exchange basis, sales in Japan surged 20%, with comparable store sales up a whopping 21%. See what the easy monetary policy in Japan is doing?<\/p>\n

Even the economically challenged eurozone region managed to pull off a six-percent increase in sales to $93.0 million, which is good, given the mess in this region.<\/p>\n

With the report, Tiffany\u2019s shares surged to a new 52-week high on Tuesday and have outperformed the S&P 500 over the past 52 weeks.<\/p>\n

\"Tiffany<\/a><\/p>\n

Chart courtesy of\u00a0www.StockCharts.com<\/a><\/i><\/p>\n

While Tiffany reported excellent results, my favorite luxury-brand stock continues to be apparel and accessories-maker Michael Kors Holdings Limited (NYSE\/KORS).<\/p>\n

In the handbag area, I continue to favor Coach, Inc. (NYSE\/COH), which you can read more about in \u201cThese Stocks Benefiting as Rich Spend Lavishly at High-End Retail<\/a>.\u201d<\/p>\n

Article by profitconfidential.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Consumer spending on luxury goods continues to ramp up. The easy monetary policy by the Federal Reserve has created a whole new generation of millionaires, or the \u201cnew rich,\u201d as the stock market propels to new records. The spending on high-end goods in the retail sector was further confirmed on Tuesday after high-end jeweler Tiffany … <\/p>\n

Continue reading “It\u2019s Good Times for the Rich: Luxury Spending Surging Worldwide”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-38648","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=38648"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38648\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=38648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=38648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=38648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}