What Recession? Porsche, LVMH, and Burberry are Kicking Ass
Porsche (POAHY) will be profitable in 2011. The WSJ reports, “Porsche’s core sports car operation continued to reap rich, precrisis profit margins. In the fiscal year, Porsche’s operating profit was €1.19 billion. Revenue rose 18% to €7.79 billion from the year before, fueled by an 8.8% rise in car sales to 81,850 vehicles.” Apparently, people with a lot of disposable income are less concerned about a double-dip.
LVMH (LVMUY) third quarter sales leaped 23%. Rachel Zoe must be affecting someone. Moët Hennessy and Louis Vuitton are back in vogue. LVMH retail was up 24%. Louis Vuitton fashion and leather goods were up 26%. Watches and jewelry were up 31%. Wine and spirits were up 24%
Burberry (BURBY) sold more this quarter too. If you don’t have the Burberry pattern on your coat or leather goods, you’re out of fashion. The British luxury brand sold 11% more stuff this quarter and is exploding in China. Better get used to red, black and camel plaid.
There’s a recession. But not everyone is living in it.