Updated: Mar 22
With the February monthly newsletter’s macro note focused on the return of inflation, what better industry to provide peer analysis on than the luxury industry? With products pitched to deep-pocketed customers, prices for luxury goods can sell for infinite multiples in comparison to their non-branded relatives. If inflation does continue to increase over the coming months and years, it is unlikely that a potential customer of a £10,000 bottle of fine brandy or a £25,000 handbag is going to refuse a 1-2% price increase on these goods. By pricing at the top end of the market, luxury goods companies are in the advantageous position of being able to pass an increase in input cost along to their customers — this keeps margins high and helps to keep growth intact throughout periods of inflation. This analysis aims to compare some of the best investments in the luxury industry, which are currently competing for a place in The Twenties Trader’s long-term portfolios.
This deep-dive analysis of the luxury industry, comparing seven of the biggest luxury houses in the world, was featured in The Twenties Trader's February monthly newsletter. To access this article, become a member of The Twenties Trader here.