Japanese earthquake

It struck me, reading the peppy results releases from Burberry and LVMH yesterday and today about their financial performance in the six months ending march 31, 2011, and first quarter 2011 respectively (Burberry revenue up 30%; LVMH revenue up 17%), that Japan barely figured in the reports.

 

There’s a report in today’s FT about falling luxury stocks on the back of the situation in Japan, but in reality, luxury groups have spent the last 10 years strategising about how to replace Japan on the balance sheet (China, anyone?), so in a way they were among the most prepared companies for the effects of the current disaster.