The outlook for luxury goods is going from bleak to almost chic, according to a new report by consultancy Bain & Co.

Bain's widely watched forecast, to be released Friday, predicts sales of luxury goods will rise 4% globally in 2010, to EUR158 billion, following an unprecedented 8% drop last year. In October, when Bain last predicted 2010 sales, the firm was forecasting growth of just 1%.