11 Most Profitable Luxury Brands In The World

The 11 most profitable luxury brands in the world are recognized for their perceived quality, high brand awareness, uniqueness, and sophistication. Luxury goods are defined as those products that are not essential but are highly desirable.

Then why do we buy them? People want to own luxury goods because they uplift one’s self-esteem as well as confer high social status to the owner. Luxury goods impart an incandescent charm and grant an exuberant approach to everyday living. Many regard luxury as a sinful self indulgence. Coco Chanel stated that “Some people think luxury is the opposite of poverty. It is not. It is the opposite of vulgarity.” Self-indulgent response from someone with the money to not be “vulgar”? Of course, but that’s what passes for wisdom in the luxury world.

Other than boosting one’s status, the 11 most profitable luxury brands in the world use countless creative hours, immaculate designing, and sophisticated materials in the creation of their end products, making them more attractive to customers, who are then willing to shell out an exorbitant amount to own them.

You might want to check out our list of the 21 Most Valuable Luxury Brands In The World, to know more about popular luxury brands across the planet.

The luxury sector operates in seven major product categories – fashion, beauty, beverages, jewelry, eyewear, auto, and property. The industry is very sensitive to emotional and psychological factors, as people from different countries have different reasons to shop for luxury items. For example, people in India buy luxury items to boast about their social status and wealth.

Most luxury companies are small- or medium-sized enterprises but have a presence in most parts of the world. These luxury brands have a wide geographic footprint and are present in all of the popular tourist destinations. Global demand for luxury goods is rapidly increasing too. According to Allied Market Research, the luxury goods market is expected to be worth about $430 billion by 2022, growing at almost 4% compounded annually between 2016-2022. Asian markets have become vital for the growth of luxury brands. Rising consumerism in emerging markets is also driving sales of luxury goods. However, the sale of luxury goods is impacted by economic and political conditions, as well as currency fluctuations.

One of the eminent challenges facing luxury companies today is whether to choose between the exclusivity of their products or the inclusivity required to attract customers in today’s online digital world. Fierce competition from leading online stores like Amazon.com, Inc. (NASDAQ:AMZN) and other fast-fashion retailers has also been an area of concern for luxury companies. Even though the past few years have been hard on the luxury industry, given rising terrorism threatening tourism and a pull-back in luxury spending in China, the 11 most profitable luxury brands in the world have successfully delivered profits in the last twelve months.

Starting on the next page, we have listed the 11 most profitable luxury brands in the world based on the common choices between three websites: Forbes, Statista and Luxatic, and then ranked them based on the profits they made in the last twelve months.

Head to the next page to begin the list!

11. Prada

– Over $320 million

Founded in 1913, the Italian fashion house is well-known for its fashion handbags, luggage, shoes, perfumes and accessories. Prada also operates in the eyewear and mobile phone sectors. The company has over 600 worldwide boutiques selling goods characterized by fine material and sophisticated workmanship.

10. Tiffany & Co. (NYSE:TIF)

– $446 million

Tiffany & Co. (NYSE:TIF) is amongst the most renowned and expensive jewelry household brands in the world, and one of the 11 most profitable luxury brands in the world. Founded in 1837, the company has more than 300 stores across leading locations in Paris, London, Australia, and New York. About 46% of the company’s 2016 sales were in the Americas region. Jewelry sales accounted for over 90% of Tiffany’s total sales. Tiffany’s iconic blue box is trademarked and has become the most popular package today.

9. Burberry

– Over $520 million

Britain’s Burberry is a global luxury brand known for its design, innovation and craftsmanship. The company sells trench coats, clothing and fashion accessories, perfumes, and cosmetics through its branded stores and franchises globally. Burberry is famous for its distinctive check-patterned coats, which have evolved over the years to become a popular style today.

8. Michael Kors Holdings Ltd (NYSE:KORS)

– $531 million

Named after its founder, Michael Kors Holdings Ltd (NYSE:KORS) was established in 1981. Michael Kors is a global luxury fashion brand offering accessories, footwear, watches, jewelry, ready-to-wear, eyewear, and fragrance products. The company is best known for its distinctive designs and aesthetics that combine stylish elegance and a sporty attitude. Having a presence in over 100 countries, Michael Kors’ products are also sold at retailers including Nordstrom and Bloomingdale’s.

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7. Coach Inc (NYSE:COH)

– $590 million

A New York-based house of modern luxury lifestyle brands, Coach Inc (NYSE:COH) started out in 1941 as a family-run workshop. Coach is a global leader in premium bags and accessories, available on five continents. In 2015, Coach expanded its portfolio by buying shoemaker Stuart Weitzman for more than $570 million in cash. It also acquired Kate Spade, known for its crisp colors and styles, in 2017 for $2.4 billion.

6. Chanel

– Over $870 million

Chanel is one of the best-known brands in the world. Its Chanel No5. is the best-selling fragrance in the world and the company is also known for “the little black dress”. Chanel also creates watches and jewelry. It sells products through department and specialty stores, as well as online, and has more than 120 boutiques and over 80 company-owned retail stores. Perfumes and cosmetics are among its best-selling items worldwide.

5. Christian Dior

– $1.25 billion

Dior is a French luxury goods company named after its founder, designer Christian Dior. Dior is a manufacturer of jewelry, watches, fragrances, makeup, and other luxury goods. The company was founded in 1946 but ventured into jewelry designing in the 1950’s.  The company is also amongst the largest apparel companies in the world. With an annual profit of $1.25 billion, Christian Dior ranks fifth on our list of the 11 most profitable luxury brands in the world.

4. Hermes

– $1.29 billion

With more than 175 years of experience, Hermes is one of the most valuable brands in the world today. Starting as a harness-making shop in 1837 in Paris, Hermes later diversified into scarves and bags. Today the brand has become a status symbol and is celebrated by famous celebrities like Nicole Kidman, Julianne Moore, and other eminent personalities. Hermes was one of the first luxury brands to launch an e-commerce site in 2001.

3. Cartier

– $ 2.07 billion

Cartier is a manufacturer of high-end jewelry and watches and one of the 11 most profitable luxury brands in the world. Headquartered in Paris, Cartier has more than 300 boutique stores across the globe. It ranks amongst the most valuable brands in the world with a brand value of over $9 billion. Switzerland’s Richemont, the owner of Cartier and Montblanc, reported operating profits of €1.76 billion ($2.07 billion) for its financial year ending March, and Cartier contributes substantially to Richemont’s profits.

2. Gucci

– $2.2 billion

The Italian luxury fashion house, Gucci, is part of the Kering Group, a world leader in apparel and accessories. The founder of Gucci got his start selling leather bags to horsemen, which he later transformed into luxury bags, apparel and accessories. Known for their unique style and design, Gucci bags have become synonymous with elegance and status. Gucci is regarded as one of the most valuable brands of all time.

1. LVMH Moet Hennessy Louis Vuitton SE (ADR) (OTCMKTS:LVMUY)

– $4.60 billion

With an annual profit of more than $4.6 billion, Louis Vuitton tops the list of the 11 most profitable luxury brands in the world. Louis Vuitton is a leading French fashion house founded in 1854. It also ranks high amongst the most valuable brands in the world. The company operates in 50 countries and has over 460 stores selling bags, clothing, shoes, accessories, and jewelry. It is the biggest and most profitable luxury brand on the planet today.

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