Luxury goods maintain appeal in hard times

NEW YORK, July 26 (UPI) -- Affluent U.S. residents and foreign tourists are maintaining their appetite for luxury goods as many Americans are suffering economically, market watchers say.

Companies that specialize in luxury goods are reporting higher sales and earnings as their appeal spreads from the "super rich" to the "merely rich" and even the middle class, The Wall Street Journal reported Saturday.

The newspaper noted that Hermès International SA reported its sales from April to June climbed 10 percent in the Americas, while Compagnie Financière Richemont SA, owner of the Cartier and Montblanc brands, saw a 6 percent sales jump for the same period.

Meanwhile, Burberry Group PLC's sales in the Americas climbed 27 percent while Patek Phillippe SA, a manufacturer of wristwatches that start at $17,500, reported it is on its way to selling out its entire inventory for the year in the United States.

But because so many U.S. residens are suffering, high-end luxury goods have an image problem, Marc Cohen, director of a luxury consulting firm based in London, told the newspaper. Cohen said the wealthy are being more careful to avoid coming across as conspicuous consumers.