Short-term view:
- Neutral
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Macy’s, where 85% of customers’ households earn $150,000 a year or less, reports a 25% drop in sales for luxury items valued between $300.- and $1’000.-; Signet, a typical high-end retailer, reports sales of items priced above $5,000 to remain strong.
Medium-term view:
- Attractive
- Luxury brands focused on wealthier consumers in the United States are performing better than those who appeal to aspirational shoppers on lower incomes. That occurs on the back of slowing global growth, high inflation and monetary policy tightening that are weighing on entry-level discretionary spending. Yet, high-end brands are more immune against a lack of consumer appetite.