The World Is Volatile but Luxury Brands Look Serene

In a world coping with inflation, war and bank runs, it seems counterintuitive that demand for luxury is still running hot.  

Yet in recent days, two big designer brands reported bumper first-quarter sales. Paris-listed Hermès said its revenue grew 23% from a year earlier in the three months through March, ahead of the 13% analysts were expecting. At LVMH Moët Hennessy Louis Vuitton—owned by Bernard Arnault, the world’s wealthiest person—sales grew 17% in the same period. This was also much higher than analysts had forecast.