In a good sign for luxury travel, Reuters is reporting that shares of high-end luggage maker Tumi did well in their market debut as investors bet on a recovery in tourism and continued spending by its wealthy clients.
The strong performance of the brand is another sign of the stability of high-end travel. The luxury goods industry has been performing well despite global economic uncertainty. Strong growth in emerging markets and the tendency of increasingly affluent Asian shoppers to buy luxury goods when on vacation have also reportedly boosted sales.
Similarly, the Associated Press recently reported that revenue from French luxury conglomerate LVMH Moet Hennessy Louis Vuitton grew 25 percent in the first quarter of the year, driven by strong sales in Asia and the U.S. and in its new acquisition, Bulgari. The company behind Dom Perignon champagne and Donna Karan fashion brought in $8.6 billion from January to March.
The upbeat market for pricey goods has prompted a spate of initial stock offerings, including the $2.1 billion IPO of Italian fashion house Prada in Hong Kong and the $487 million IPO of Italian luxury shoemaker Salvatore Ferragamo.