Love for Luxury Overcomes Global Economic Fears

Affluent shoppers shrugged off anxiety about the global economy that cast a pall over the luxury sector in the spring, leading Estee Lauder, Michael Kors and Saks to issue bullish sales forecasts.

Consumers showed a willingness to pay for high-end handbags and designer gowns and anti-aging creams despite fears earlier this year that rocky stock markets and worries about the euro zone financial crisis and the global economy would dampen luxury spending.

"We have not seen any change in traffic in the full price channel," Michael Kors Holdings[KORS 49.33 6.98 (+16.48%) ] Chief Executive John Idol said on a conference call on Tuesday.

Kors raised its full-year sales and profit forecast and said it expects same-store sales, a key retail measure, to rise 30 percent.

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- Posted: 2012-08-14 18:13:11

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