In today’s recession, some companies are celebrating after just one quarter of increased revenue — but Prada and Tiffany & Co. are seeing a sustained revenue boom.
Prada has seen a steady flow of profit over the past nine months – in fact, their profits tripled in that time. According to WWD, Prada has been focusing on “developing its retail network” by adding a number of new international stand-alone stores — the brand reached a total of 310 stores by October, compared to 267 in 2009. While the added locations surely encouraged the couture house’s positive numbers — worldwide sales have risen 31% thus far this year –- they also helped to expand the brand to previously-untouched cities.
Even before its great success from 2010’s Black Friday and Cyber Monday, Tiffany & Co. also saw sales rise world-wide in this year’s third quarter: 22% in Europe, 29% in Asia and 9% in North America. “Sales growth is exceeding out expectations,” Chief Executive Michael Kowalski told the WSJ. Additionally, U.S. Internet and catalog revenue for the fine jewelry retailer was up 7%, and when compared to 2009, overall sales increased 14% to total $681.7 million – that’s a whole lot of bean necklaces.
Why the sudden consumer urge to splurge? Perhaps because many shoppers self-gifted on jewelry and other luxury goods this year — and, well, engagement rings never go out of style.
But Prada and Tiffany’s aren’t the only high-end businesses prospering: Burberry, Hermes and LVMH have all reported generous overall profit increases. Though none offered major discounts thus far this holiday season, multiple media sources have reported that shoppers continue to save for (and spend on) luxury purchases. Vive la luxury!