Apparel, Accessories & Luxury Goods – a rise in net income

The global apparel, accessories and luxury goods market is one of the most dependent on economic conditions. During the recession it declined with decreased spending amongst consumers, but after 2010 it started to score moderate growth, which boomed in 2012. It is expected that it will remain stable until 2016, yet the forecasted rates are relatively high in comparison to other sectors. The total revenues for the market were $1778 billion in 2012, which was a CAGR of 3% for the last three years. Europe, as one of the leading markets worldwide reached a value of $586 billion, while the Asian market grew up to $475 billion. Apparel accounted for $1175 billion of revenue, which was a 66.1% of the whole value.
Analysts believe that its dominance in the sector will continue in future years, but other segments will increase their value too. With increased consumer spending luxury goods have been noted to increase in purchases, especially with prices still relatively low due to the recession.
Companies such as Nike and Adidas, that have strong position in the market, have performed in unison with the industry. Relatively low variance in their stock prices, a slow but stable increase and future expectations for better performance have increased investors’ confidence over the last year.

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