The Companies and Markets show: Centrica, luxury goods, SJP and GSK
Investors' Chronicle
00:00
The Luxury Sector and Prospects
It's such an interesting sector. The air is so rarefied at the top of this tree that you're talking about business models and valuation cases which are sitting on quite disconnected stories to the broader economy. You've got a price insensitive repeat and global customer base where if Russian elites are no longer able to travel very easily, it doesn't matter because you've got hundreds of people queuing up to pay well over the odds for their products. And I think there are risks with businesses like this. There's huge family concentration in the shareholding and there are always risks to brand and brand equity. But that explains why people would still buy them at almost as much as seems almost exorbit
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