During the past year, we’ve heard the constant droning chant about how sluggish the global economy has become. China, the world’s second-largest economy, has seen consistently lower gross domestic product (GDP) growth, while recent retail sales figures for July came in well below expectations.

Here at home, still the biggest fish in the global economic pond, we’ve seen anemic GDP growth of just 1.5% for the second quarter. Moreover, the unemployment rate has climbed to 8.3%, a number that suggests the economy will likely remain sluggish for some time to come.

Well, I say forget about those downbeat numbers and concentrate on sectors of the economy largely immune to economic pain. 

This means you should focus on luxury goods makers.

One luxury goods company showing no sign of slowing is luggage and travel goods maker Tumi Holdings (NYSE: TUMI). On Aug. 6, Tumi reported second-quarter revenue that came in well above Wall Street expectations. The company also said net sales in the quarter jumped 22%, while same-store sales during the quarter in North America surged 8.4%.

Adding to the bullish mood for the high-end bag maker was the fact that it raised its full-year earnings forecast from 64 cents to 67 cents per share to between 67 cents and 70 cents per share. That news caused the stock to surge 23% the following trading session, with the chart below showing the resulting spike in the shares.

The latest move in Tumi shares isn’t the only time this year we’ve seen big buying interest in the stock. The company stormed out of the gate in April with its IPO debut, which raised more than $338 million for the firm. And after getting caught up in the May downdraft along with nearly every other stock, shares have come back nicely. The stock now is up nearly 22% from its $18 IPO price.

The Tumi tale tells me that despite hard times for so many, consumers with enough green in their pockets aren’t hesitating to spend it on luxurious luggage. That’s good news for this stock, as well as other similar companies that cater to the well-heeled consumer.

Another stock on my luxury list is an icon in the high-end retail space, Tiffany & Co. (NYSE: TIF). Shares of the jewelry seller, whose products come in the famous little blue box, saw a big sell-off from May to June. But since falling to its June low, the stock has come roaring back.

The chart here shows the latest move higher in the shares, a move that’s taken the stock back up above its 50-day moving average, and nearly 16% off its June low.

In May, Tiffany cut its earnings forecast for the full year, citing a slowdown in foreign and domestic sales. On Aug. 27, we’ll find out how much, if any, slowing occurred in the most-recent quarter.

I suspect that any substantive uptick in either same-store sales or total revenue will quell the naysayers on this one, and that will likely mean a big jump in the shares that could take it well above the technically significant 200-day moving average.

If you want to add even more luxury to your portfolio, then you might want to shop for the ultimate luxury-oriented retailer, Saks Inc. (NYSE: SKS). The stock has done quite well this year, and despite getting caught in the wider market pullback in April and May, shares still are up 8% year to date.

The chart below shows the recent breakout of Saks through the short-term, 50-day moving average, as well as the long-term, 200-day moving average. The move of both key technical metrics is what I like to see when putting a buy list together.

I consider Saks to be a company that’s been more immune to the wider economic pain than most, simply because its merchandise and pricing is oriented almost exclusively around high-end shoppers. 

Action to Take –> Luxury stocks do well even during a tough economic environment. The three stocks above have a distinguished brand value and appeal to most consumers because of their glamour and superior quality. Because these companies sell to consumer with strong buying power, these stocks will likely do better than a typical stock. Investors who want to consistently make money should research these stocks further.

This article originally appeared on TradingAuthority.com:
3 Stocks to Profit From the Luxury Trade