Luxury Fashion Sales Are Up

Is the global financial crisis over? Are we now all buying luxury designer handbags like never before? Well the 2010 profit reports of fashion houses like LVMH Moet Hennessy-Louis Vuitton, the world's largest maker of luxury goods (see Summary 2010 Half Year figures LVMH) and that of French luxury goods giant PPR, the owner of Gucci, Yves Saint Laurent and Puma (see: Champagne popping again in luxury business) suggest that we are.

Louis Vuitton Chrissie MM, a Luxury Designer Handbag in a dazzling Monogram Multicolor canvas.

Earlier this week LVMH Moet Hennessy-Louis Vuitton, announced a 53 per cent jump in profits in the six months to the end of June, from €687m in 2009 to €1.05b ($1.36b) in 2010, with its flagship brand Louis Vuitton posting a 28% growth to €1.2b of total operating profit and today PPR reported that its net profit in the six months to the end of June jumped 113.3 per cent to €403m ($444.9m) with the company's Gucci brand sales increasing by 17.7% and now accounting for slightly more than 40% of its sales.

Gucci medium hobo, a Luxury Designer Handbag with leather belt and running GG detail.

Other high-end fashion houses such as the UK fashion group, Burberry, and France’s Hermès have also reported increased results. For example, last week Hermès reported a 22.8% increase in sales (LVMH results signal luxury revival).

So what does all this mean? Has the demand for designer fashion bounced back strongly this year such that we're now seeing a revival in luxury shopping? Have us fashionistas returned to buying "it" bags? Or is it more that retailers are replenishing their designer clothing and accessories such as designer shoes and designer handbags after the recession (Bloomberg Businessweek, LVMH Profit Beats Estimates on Rising Fashion Sales)? It will be interesting to see how the year-end profits turn out.

Louis Vuitton and Gucci Designer Handbags

Just a brief description of the lovely Louis Vuitton and Gucci Designer Handbags shown in the images above. The first image is of the Louis Vuitton Chrissie MM in a dazzling Monogram Multicolor canvas. It features rich Gold brass studs giving both a sophisticated and edgy rock chic look and is available in both Blanc and Noir. This super chic Louis Vuitton designer handbag is priced at $2,720.

The second image above shows the gorgeous Gucci medium hobo with leather belt and running GG detail. This designer handbag features antique brass hardware and detachable identification tag with embossed Gucci crest trademark and is priced at $1,850.