luxury goods

By now we're all accustomed to hearing about the "two-speed economy," in which the wealthy flourish and the less affluent fall farther and farther behind. The widening gap between rich and poor has not been lost on the stock market: The valuations of luxury goods companies are much higher than those of lower-end firms.

The Japanese are the world's most voracious consumers of luxury goods, from Louis Vuitton handbags to Cartier jewelry to Hermes high fashion. So purveyors of those luxury goods are justifiably worried about the effect of the Japanese quake and tsunami on their bottom lines.

Retailers got some unexpected love from shoppers in the form of strong February sales. But whether consumers repeat the feat in spring could depend on gasoline prices and how they feel about their finances. So, March could be tough.

Most forecasts expect the month will show 3% growth or better over the same time last year when major merchants report their tallies on Thursday. One thing seems clear: Higher-end households were more willing to spend than lower- and middle-income ones.

As the economy improves, Americans have begun splurging again. But they're limiting their indulgences to haircuts, casual dining and coffee, while continuing to forego many bigger expenditures, like vacations and dining at expensive restaurants.

Many shoppers who took advantage of the early holiday sales in November held back and forced retailers to cut prices as Christmas neared. Despite increases in luxury spending, the results show that mainstream consumers remain focused on discounts.

This global designer, maker and retailer of fine jewelry and other gift items went through the recession like it never happened. The Tiffany name is globally known, yet analysts agree it has plenty of room to expand in the U.S. and worldwide.

Recognizing that even the well-heeled have money problems these days and trying to expand their customer base, many luxury-goods sellers now have something for (almost) everyone. Here's a rundown of some less-pricey goodies you can get at the toniest shops in town.

Want to be an extra-generous Santa in 2010? Try buying the most expensive item at each of 12 popular U.S. retailers. According to an unscientific survey by 24/7 Wall St, that would set you back nearly $15 million (thanks mainly to a visit to Tiffany). But, wow, what goodies you'd be hauling down that chimney.

Shares of luxury-goods maker Burberry (BRBY) jumped as much as 6.5% Wednesday on speculation of a potential buy-out. The stock rose as high 1,204 pence, putting the company's value at 5 billion pounds ($7.9 billion), Reuters reported. Market players have speculated for months that Burberry...