The titans of luxury in New York, Paris, London, Tokyo, and Dubai have spoken, and their mood is, generally, upbeat. The Reuters Global Luxury Summit, which started yesterday and ends tomorrow, is a three-day blitz of interviews with chief executives and chairmen of Hermes, Burberry, Tiffany and Co., Rolls-Royce, Montblanc, Chopard, Estee Lauder, and Saks, to name a few.

Here are some highlights:

• Designer Jonathan Adler, says his mandate for the Christmas season is "irresistable giftables. "I hope that when you walk into my store you will feel like you're in a crack-den of adorableness." As for how his business is faring in the recession: "I think that my design aesthetic is probably the right design aesthetic for right now," he told Reuters. "I've always called my design philosophy happy chic, and it is about creating design that is chic, luxurious, and I hope beautiful, but adding an element of levity and irreverence that I think makes people feel good. And probably in these grim economic times, the element of happiness is resonating with consumers."
• The new Rolls-Royce Ghost model, to be available in September, may help double the carmaker's annual sales. The projection is based on the 1,500 deposits already received for the Ghost.
• Hermes is breeding crocodiles on its own farms, mainly in Australia, to keep up with demand for its exotic-skin $50,000 handbags, because, as Hermes chief executive, Patrick Thomas, put it, "The world is not full of crocodiles, except the stock exchange!" [Meanwhile, Louisiana alligator farms are struggling.]
• Classical styles for handbags are winning out over "it" bags, according to Burberry chief executive Angela Ahrendts. "They (shoppers) want them to last. They want to be able to psychologically know they can carry them for the next couple of years and no one will know how old it is."
• Montblanc is planning to open four boutiques in Saudi Arabia this year. Pens account for about half of total sales since the company has diversified into watches and fine jewelry.
• Chopard has seen sales drop 15-20 percent this year, but is hoping a recovery will level off the sales drop to just 10 percent. "We already feel a little bit of a comeback," Chopard's chairman, Karl Scheufele, said.
• Juicy Couture is increasing the number of products sold for $200 and less to adjust to the recession, Juicy Couture's president, Edgar Huber said.
• Sales of traditional Japanese doll sets, costing from $2,000 to $50,000, have held in the recession.
  

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Every season it seems the European fashion houses try to outdo each other with one incredibly decadent item of men's clothing; despite the recession it seems this year is no different. We've seen Salvatore Ferragamo's $250,000 crocodile trench coat and Hermès' $150,000 crocodile pea coat; now here's an alligator officer's jacket from Louis Vuitton's Fall/Winter 2009/10 collection recently shown in Paris. Louis Vuitton mens design director Paul Helbers described the collection as inspired by "the traveling wardrobe of an African king." The jacket has not been priced yet is expected to sell for somewhere in the $50,000 - $75,000 range, and will probably only be available by special order.

[via JustLuxe]

Despite the burgeoning recession Hermès is opening a new store in East Hampton this summer, but the French luxury goods firm is hedging its bets and the shop will shut its doors come September 20. "We have 22 of our own boutiques in the U.S. - East Hampton will be 22 and a half," Hermès President and CEO Robert Chavez tells the East Hampton Star. He said the company had been eyeing a Hamptons location for a while but that a permanent location just doesn't make sense these days.

"We just weren't ready to commit to a long-term lease," he notes, "knowing that obviously the key selling period is in the summer months when most people are there." Most Hamptons retailers are doing the same this season. The Hermès pop up boutique has a more casual feel, is painted a crisp white and features displays of scarves, handbags, neckties, housewares, bathing suits and beach towels. There's also an equestrian section featuring a one-of-a-kind white leather saddle, "price available upon request."

The world's first $6 million Hermès helicopter, designed by the famed French fashion house in conjunction with Eurocopter, has been delivered to Falcon Aviation Services in Abu Dhabi. Back in 2007 my colleague Deidre Woollard reported on the announcement of the ultra-luxurious chopper, dubbed the "l'Hélicoptère par Hermès," though no price was quoted at the time. Unsurprisingly, the oil rich emirate has snapped up the first of the craft, based on Eurocopter's EC135 model and done in brown and cream livery with signature Hermès orange accents.

The cabin of the helicopter was completely redesigned by Hermès Interior and Design - who also created a custom Rolls-Royce for the Four Seasons George V in Paris we wrote about last year - to maximize the available space and make it as luxurious as possible. Hermès' classic canvas "Toile H" was used to cover the cockpit while the handcrafted seats and banquette are upholstered in natural-grained Hermès calf leather. A sliding glass partition separates the passenger compartment and cockpit, enhancing privacy while allowing light to enter.

"We are delighted to be the first customer for 'l'Hélicoptère par Hermès', which gives us the opportunity to offer a unique travelling experience to our customers" FAS's Vice Chairman Salem Al Kayoumi stated. "This helicopter illustrates a successful fusion between design and technology, where every detail has been created for VIP and business travellers. They are busy and highly demanding, yet wish to travel with utmost comfort and elegance."

French industrial designer Alexandre Fourn has come up with an amazing electronic Hermès agenda concept that could herald a new age of luxury goods. The Hermès Contre-Temps employs futuristic flexible OLED touchscreen and e-paper technology to expand from a pocket-sized device to a full-size diary when needed. It features all the bells and whistles of an iPhone including an electronic organizer, photo sharing, email, GPS, an RSS reader and more. It even has signature Hermès saddle-stitched orange leather inserts. Hermès should definitely hire this guy.

In a Classicist column last summer we reminisced about the the golden age of motoring when one would embark on an automobile journey with elegant picnic and cocktails cases carefully stowed in the boot of the car. On May 19th we'll get another glimpse into the bygone era of traveling in true style when Christie's London South Kensington branch auctions off an amazing selection of vintage Hermès, Louis Vuitton and Dunhill luggage. With the favorable exchange rates currently in effect it's an enticing opportunity to build a collection with lasting value, while truly timeless luxury items are more appealing than ever.

"Harking back to a golden age of travel, vintage luggage encapsulates the glamor and decadence of a bygone era when journeying to a foreign land involved adventure, romance and style," notes Christie's' Director of Textiles Pat Frost. "These exquisitely crafted pieces evoke a time when the journey was as important as the destination. With iconic names including Louis Vuitton, Dunhill and Hermes leading the field and remaining very collectible they not only functional but design objects in their own right."

Highlights of the sale include two cream colored canvas and leather suitcases by Hermès from the mid-20th century, monogrammed "APW", estimated at about $2,200 - $3,000; two fine black cases by Dunhill and T. Anthony, the first of black leather in semi-circular form with one fitted tray and gunmetal hardware, the second of black fabric with leather strapping, lined in moire with various pockets and gilt hardware, est. at about $1,200 - $1,500; and a monogram hard-side case and cover by Louis Vuitton (above) with a beautiful patina to the the leather handle, est. at about $900 - $1,200.

Some luxury brands may not be doing well but Hermes is still doing a brisk business in Birkin bags. Its reported profit beat analysts' estimates and the French brand even raised its dividend. The company's net income for 2008 rose less to 290.2 million euros beating an estimate of 287.5 million euros which was the estimate by 12 analysts compiled by Bloomberg News. It will pay a dividend of 1.03 euros a share versus last year's 1 euro.

While most stores have had a rough start to the new year, Hermes found that sales in the company's own stores rose in January and February. The confident CEO Patrick Thomas told Bloomberg that the company won't change its strategy and plans to continue opening new stores.

It's been a challenge to predict which luxury brands will do well. Some such as LVMH, the owner of Louis Vuitton and PPR, the owner of Gucci have both seen the luxury market remain solid but Bulgari saw a huge drop. Hermes has expanded less rapidly than some brands but it has maintained its prestige level.

The $1.5 million Bugatti Veyron may already be the most super of supercars, but it's also been the subject of countless special editions designed to up the ante even further. The ultra-exclusive models we've seen include the Pur Sang, Sang Noir and Hermes editions, as well as one-offs like the Mansory Vincero. Now reports have surfaced that Bugatti will unveil a new Veyron limited edition called the Centenaire 'Bleu' in celebration of Bugatti's 100th anniversary at this month's Geneva Motor Show. The Centenaire could produce up to 1,400 hp with a top speed around 275 mph to help the Veyron recapture the world's fastest production car title. Carbon fiber could be used to reduce weight and up the speed quotient.

No matter how hard to shop for, any valentine appreciates a heartfelt gesture -- from a savory meal to a classic sterling key ring with a set of keys to your place. Ideas in the gallery range from classic corkscrews from Hermes (perfect for a romantic, secluded picnic) to everyday luxuries that will keep you in mind and heart. And each choice should inspire you to do even more -- find the perfect wine to go along with the corkscrew, pack up that stylish weekender bag for a surprise getaway.

What do you sit in after taking off your $150,000 Hermès crocodile peacoat? A $24,000 Hermès crocodile chair, of course. The newest incarnation of the French luxury goods house's classic Pippa folding chair design is finished in the world's finest matte black crocodile skin, with an ebonized maple frame and nickel plated hardware. The limited edition crocodile Pippa is based on an original designed in pear wood and saddle leather 20 years ago by architect and designer Rena Dumas, wife of Hermès President Jean-Louis Dumas-Hermès. It has now expanded into a collection of elegant foldable indoor and outdoor furniture.

[via JustLuxe]

Even as the luxury market started to fall apart in the second half of this year, French luxury brand Hermes remained strong, almost freakishly so. While other luxury groups such as LVMH and PPR began to lag, the share price for Hermes is up 16.7% over the past year. But Forbes predicts that the company's currently level of profitability is not sustainable and that shares will start to fall next year. Most of the stock is held by the controlling family with approximately 30% freely traded. Rumors that Hermes will be sold have also boosted stock prices at various points although denials have always been speedily issued. The stock is still up so this is a good time to collect gains and perhaps move on. In the Forbes article John Guy, an analyst with MF Global picks Burberry as a smart bet for the future.

At least the right Hermes bag is still a good investment...

At first I was taken by Hermes' newest luxury watch with its conservative handsome looks and commendable use of the Hermes Clipper watch theme. Then I noticed the price for the new Clipper Mecanique Chronograph at well over $50,000 (about 44,000 Euros), and I began to wonder if this included a his and hers model, as well as a few for the kids. Aside from the fact that the watch is cased in 18k rose gold, and contains a fine mechanical movement, nothing justifies this high price. The mechanical automatic movement is a bi-compax chronograph with a 30 minute counter, the time, and date. There is nothing particularly complex or special about the movement, or in the case construction as far as I can tell.

To justify the price Hermes may point to the fact that it recently gained entrance to the Fondation de la Haute Horlogerie. As far as I can tell, this merely signifies that Hermes constructs mechanically oriented timepieces that now focus more on fine watch making with appealing designs versus mere 'fashion watches.' Oh, and entrance into the foundation gives Hermes a listing on the foundation's website! Nevertheless, in my humble opinion, the high price for this watch is unjustified. Hermes seems to have figured this out from the get go, as it offers the Clipper Mecanique Chronograph only in a limited edition of only 24 pieces.

Otherwise, the Hermes Clipper Mecanique Chronograph is a fine watch. The 44mm case receives the pleasant styling of the Clipper series complete with the bezel rivets, and the circular numeral placement, and faceted sword styled hands. Let us hope that Hermes is 'discounting' these watches were they are available.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Proof that an expensive handbag isn't always a pointless extravagance can be found at Christie's where several upcoming sales show that Hermes bags can be an investment. On December 9 during the Jewels sale at South Kensington, London, Christie's will auction off 23 Hermes handbags including the Mini Kelly bag in forest green and the Sac Malette style in brown which, gilt with metalware, once belonged to Charlie Chaplin's wife. Shown at right is a rare Haut à Courroies bag. The bag was first designed by Hermes circa 1900 to carry equestrian gear but quickly became a popular travel bag. Hermes produces no more than five crocodile bags of this size a year. It is estimated to sell for £15,000 - £18,000.

Christie's is also offering Hermes bags during the Interiors sale in New York, December 18-19. A bright orange Hermes Kelly bag is estimated to sell for $4,000-$6,000. The Kelly bag has been a prized classic for decades and never goes out of fashion.

[via Vogue UK]

A steaming hot drink is one of the universal comforts of winter and what better way to enjoy yours than in a beautiful porcelain cup in the company of somebody you love? Hermès has a beautiful collection of cup and saucer sets that come in a variety of cheerful and colorful patterns, many of them with a jungle animal theme, and are sold in sets of two so you won't have to enjoy them alone. Or if you prefer your beverage in something more substantial you can always opt for one of the matching coffee mug designs which are equally beautiful. $320-$510

The other day we told you about Karl Lagerfeld's bespoke trunk from Louis Vuitton which holds the Chanel kingpin's collection of 20 iPods and a speaker system. In the same vein, we now present Eric Clapton's ultra-luxurious, custom-made crocodile guitar case from Hermès (above). Hermès also has a Special Orders workshop which can produce everything from a handbag to a bespoke interior for a Rolls-Royce, and is if anything more exclusive than Vuitton's atelier.

Clapton's case was specially made to hold his Martin 00028 EC acoustic guitar, the rock star's signature model ("EC" are his initials) which he helped to design. The shell of the case, which is covered in the world's finest matte-finish crocodile skin, is handmade of poplar wood from Nazareth, Pennsylvania and the whole is lined in blue silk velvet. While we don't know what Clapton paid for the one-of-a-kind case, it is likely to have cost at least $100,000.