G-III Apparel Group Ltd posted a quarterly loss significantly narrower than expected, helped by strong spring business in its dress and sportswear categories, and forecast full-year earnings above market estimates.
For a glimpse at the diverging consumer forces vexing luxury goods firms in Japan, take a stroll through the ritzy Ginza district where upscale and discount retailers are battling for shoppers' attention like never before.
Luxury groups are rushing to set up shop in China but the prized market, set to be the world's biggest, is a tough one to conquer without good connections with local authorities and partners who can deal with changing rules.
Luxury groups are increasingly jumping on the celebrity advertising bandwagon to make their voice heard and boost sales, a trend that puts pressure on margins and which is here to stay, luxury executives believe.
Swiss watchmaker Hublot, part of luxury group LVMH, achieved record sales in the first five months of 2010 but is concerned that the European debt crisis will hit demand for expensive watches, its head said.
Luxury groups are finally warming to the Internet, lured by surging sales and a wider audience for their brands, though lingering suspicions could limit the level of online penetration compared with the wider retail sector.
The next aspiring Marc Jacobs or Stella McCartney may find it harder to get financial backing as luxury dealmakers target well-established brands for growth and top design houses begin paring smaller assets.