Written by Tendenzias

The luxury market takes on a rising trend

In a time of crisis we would expect that the world of luxury will suffer a setback. This is not so. In fact, after a period of stagnation in 2010, this market has resumed its successful march in 2011 and throughout the year is following a very positive trend in terms of turnover. In fact, companies that operate in the international market and in the field of fashion and luxury, have recorded a lot of important consensus that has certainly helped to increase their profitability. According to a report that was presented at the University of Milan, seventy listed companies which were examined were shown to have a volume of international business worth more than 200 million euros. The revenue of the acquired companies has increased by 10.9% in 2010 and the concrete fact is verified by the brilliant performance in the profitability of loans, with a return on investment ROI, which stood at 12.4%. The favorable development of 2010 was strengthened, and indeed largely consolidated, according to preliminary findings in 2011, where there has been a financial loan growth to 6.1% of turnover in 2010 from 4.9% of 2009 and the financial investments in operating activities. A depreciation of 105.2% to 83% indicates an intensification of financial investments to support the core business and future development, but early 2011 data indicate a reduction in investment to 3, 2% of sales. Anyway, the trend of increased sales during the first six months of 2011 shows a rate of 12.4%.

The profits of the companies were mainly due to the recovery of the market, but are part of the effect of the policies of companies in recent years, marked by analysis of production and a more diligent management of working capital. The operating performance is fortified by the efficient development of the limited number of stores amounted to +2%. The companies that operate in the distribution of luxury goods in 2010 are under-performing against firms-range. Among the companies that have recorded the best results in terms of turnover, there are five of the top ten that have a turnover-range and are listed as Salvatore Ferragamo and Prada. One thing of note is that there are fundamental elements of this capital on growth. One of these is certainly the size of the company, in fact, the bigger the company with income that exceeds five million, the better it performs. One slice of the luxury market which seems to have been most successful in sales and consequently turnover, was that of leather.

It is possible that during the second half of the turnover of companies operating in the market for luxury goods will not rise again. After all, the fashion has always been a leading sector of the economy of our country, with each year of record seeing increases in demand from abroad, which allows more exports and thus determining important results for our trade balance.

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