The business of luxury is seduction. The aesthetics, the textures, the aura of exclusivity all conspire to turn savvy customers into true believers. That logic is not supposed to apply to hard-nosed investors. Yet their approach to the sector also veers into blind faith.
See, for instance, the market’s reaction to LVMH’s — horrible — sales. The luxury juggernaut’s key fashion and leather goods business, which includes br