How the other half lives: luxury companies thrive

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A string of consumer companies, from spirits group Diageo to Birkin bag maker Hermes, have this week reported they're making money from their most expensive products and expect to continue to do so, despite a cost of living crisis that shows no signs of abating.

Sharply higher interest rates, surging inflation and a prolonged energy crisis are leading to the conclusion that the global economy is headed towards recession.

Chairman Axel Dumas said he saw no sign of a slowdown in any region, even though the company has raised prices 4% this year. That will plunge hundreds of thousands into financial jeopardy, unable to spend on anything but the absolute basics. While wealthier consumers' savings are still being eroded by inflation, they currently seem focused on enjoying the freedoms that have returned with the easing of COVID-19 restrictions.

IAG sales, on trips mostly booked out of Britain, Spain and the United States, more than quadrupled to 9.35 billion euros in the first half of the year versus last year.

 

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They used to hide their Fentanyl profits in real estate. Now, they do this.

Read the damn room, CTV 😒

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