The Week In Numbers: Lap Of Luxury

There was a time when China was the destination of choice for all things luxury – but not anymore. The rest of the world, it seems, is picking up where China has chosen to clamp down on conspicuous consumption.

Gucci this week said a sales jump in Europe and Japan helped to offset weakness in the Middle Kingdom. The upmarket retailer posted a 27% and 24% surge in third-quarter retail sales in Western Europe and Japan, respectively.

Gucci is not alone. Las Vegas Sands, the operator of Marina Bay Sands integrated resorts, said underlying profits at its Singapore operation rose 10.8% in the third quarter. It added that the better performance was driven by healthy VIP volumes. The news lifted shares in peer, Genting Singapore (SGX: G13).

Sticking with luxury, Italian motor maker Ferrari is worth a whopping US$10 billion following a successful flotation on Wall Street. Shares in the upmarket carmaker, which were sold at US$52 a pop, gained around 6% on the opening day to close at US$55.

Elsewhere, the Federation of the Swiss Watch Industry said exports to Hong Kong and China slumped in the three months between July and September. The quarter was reportedly the worst for Singapore watch retailers, with Swiss exports to the Republic down by 8.5%. Luxury watch retailer, The Hour Glass (SGX: E5P), said the poor market conditions could last for “at least another two or three years.”

But where China is excelling is in burgers and fries. McDonald’s shares hit an all-time high after the company said a rebound in quarterly restaurant sales showed that a turnaround plan is starting to work. Same-restaurant sales in China were up 26.8%, helped by a focus on value and breakfast.

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