Equity Research on Tiffany & Co. and Zales has revealed that the growing middle class in emergent markets are the main driving factor for the increase in sales of luxury goods like fine jewelry. The recovering economy of the United States and Europe have also contributed to this sector’s growth. Also noted is that the recent earthquake in Japan could plausibly slow down the sales growth in luxury goods because Japan is the 3rd largest purchaser in this category making up over 20 percent of sales in the luxury goods sector.
“Luxury goods have been seeing relatively strong sales as the economy recovers. Emerging markets, with their fast growing middle class have been responsible for some of the strong sales but the US and Europe has also been contributing. Since the end of the recession, the luxury goods sector, including jewelry stores, seems to have been regaining ground faster than midrange retailers. Visit www.shinesroomonline.com to see how companies in this industry have grown over the past years and how they are expected to perform in the future.”