I came across some figures from Euromonitor International, which stated that overall retail growth in 2012 was stronger than it was in 2011, with sales of global luxury goods exceeding $302 billion.
Emerging market luxury-good sales contributed to the improved performance. While they are small, emerging markets are growing rapidly and providing another group of buyers with the opportunity to purchase more expensive items.
Movado Group, Inc (NYSE:MOV) is joined by several companies that are taking advantage of the growth offered in the emerging markets. Take Tiffany & Co. (NYSE:TIF), for example. The upscale jeweler also released its fourth quarter earnings in recent days. Results showed that it has also been able to maintain strong sales despite the recession. Its success was largely due to its strong sales in emerging markets.
Then there’s Coach, which is also taking advantage of emerging markets. During the last holiday shopping season, Coach had to deal with a significant decline in North American sales. It reported, however, that sales were up 40% in China, which is considered a small market for the handbag maker.
Movado is well-positioned to continue growing revenue. The strategic long-term plan already in place is impressive and achievable. We’ll get more information about the company’s performance when it releases its next earnings report on May 30.
The article Luxury-Watch Maker Displays Survivor Skills originally appeared on Fool.com and is written by Tedra DeSue.
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