Emerging Markets Luxury Demand Reaffirmed by Burberry

By Emerging Money>,

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Burberry continues to receive the benefit of a growing luxury class in the emerging markets.

Their second half 2013 earnings announcement today shows that fears related to a China ( FXI , quote ) slowdown are missed placed.
burberry logo Burberry today announced sales growth of +19% with Asian sales also a +19% as and China band Korea were better than expected.

Burberry opened a flagship location in Shanghai earlier this month with a commitment that they have also exhibited in other major developing cities.

Despite the perception of a slower Chinese consumer has China macro slows the results from major multinational luxury brands are mostly very strong.

Currency headwinds from a strong British pound ( FXB , quote ) may dent the bottom line but it's the top line that many thought was at risk last fall.

China will be more than 30% of luxury sales growth globally in the next five years while Latin America Also booms for legacy players like Tiffany ( TIF , quote ) Prada Gucci and LVMH.

Burberry and Tiffany have been in a 12% trading range over previous three months while waiting for signals on their global growth both shares are bouncing today and should trade to February highs with March lows as your stop

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
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