When a group of wealthy investors compete with each other to buy an asset, surely they have a clear idea of its financial value? Jussi Pylkkänen, president of Christie’s, who on Monday night auctioned Picasso’s “Les Femmes d’Alger” (Version O) to an anonymous buyer for $179.4m, thinks they do.
Luxury goods companies increasingly seem to inhabit a parallel universe.
Many ordinary shopkeepers – at least in the recession-blighted west – are grappling with slumping sales, falling share prices and the threat of bankruptcy.
In the US, in an effort to offset worse than expected post-Thanksgiving trading, many stores caused confusion, according to the New York Times, by bringing forward “Super Saturday” – a day of pre-Christmas discounting – to December 17. In the UK, the bleak outlook for the likes of HMV, Peacocks and Blacks Leisure, is a symptom of what one analyst forecasts will be the worst Christmas for a decade.
Contrast that gloom with the great expectations of the luxury brands. On Wednesday, Mulberry announced it would appoint Bruno Guillon, a director of Hermès, the high-end French company, as its next CEO. He’ll lead the UK bagmaker’s push into Asia. The group’s shares added another 3 per cent, having risen 60 per cent in the past year. Read more