Following the trend set by other global luxury brands, Hermes and LVMH (Louis Vuitton Moet Hennessy) announced fourth quarter sales growth on Thursday and Friday, suggesting the worst of the crisis could be over for the sector.
After announcing that annual profits fell 13 per cent to $2.3 billion, LVMH chief executive Bernard Arnault said he was pleased with "record" sales figures for December, which he said would "grow in January".
Good news for the number one global luxury group after almost stagnant sales in the first three quarters, slowed by wholesale stock clearances, which particularly affected watches, jewellery and champagne. Thanks to Christmas sales, Hermes said it achieved its target of annual turnover growth of 8.5pc.
At LVMH, champagne was behind an 80pc fall in the turnover of the company's wines and spirits division.
The division head Christophe Navarre said bubbly was always the worst-affected product in an economic downturn, but December had been a good month.
Luxury firms are cautious about the future and reluctant to make forecasts, but they plan to continue their disciplined management approach.
LVMH and Hermes have both underlined their resilience in the world financial crisis, but Arnault observed that this was in large part due to "emerging markets supporting growth in 2009 and compensating for a fall in business in other markets". Put another way, China's growing appetite for luxury goods offset the fall in sales in the US and Europe, the areas worst affected by the recession, and Japan which was hurt by the falling yen.
