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Gucci sales slid 25% in Q1: The brand鈥檚 struggles put parent company Kering in a tough spot as it attempts to navigate a slowdown in luxury goods spending.

"Department stores are getting a bad rap," said our analyst Suzy Davidkhanian on a recent episode of "Behind the Numbers." "The way that department stores were structured as this one-hit wonder shop where you could find every single thing under one roof is a fallacy." Department stores are in a tough spot, as Hudson BAy鈥檚 recent bankruptcy shows. But ones that embrace new kinds of experiences, like the newly opened Printemps luxury department store in New York City's Financial District, might have the right idea for the future of department stores.

鈥淭here's a big change in the luxury market. The consumers are still there, but they're being more selective about what they buy and when they buy it,鈥� our analyst Sky Canaves said on an episode of the 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒鈥� podcast. Expanding into new markets and raising prices isn鈥檛 always an option for luxury brands, but there are other areas of opportunity. Here are three ways luxury brands can fuel discovery, spark engagement, and develop loyalty.

72.6% of US luxury buyers surveyed in August 2024 planned to spend the same amount or more on personal luxury goods over the next year, according to an 蘑菇AV and Bizrate Insights survey.

A lot happens in a week, so every Friday we're going to analyze all the new data and provide you with some of the key takeaways. Welcome to the Friday 5. This week, the economic blackout day made an impact, ecommerce buoys beauty, and luxury spending continues.

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Luxury brands shake up their creative ranks: While Gucci is betting on provocateur Demna to revitalize its brand, Versace opts for a steadier path.

Social commerce has the potential to go mainstream for luxury. More than 40% of respondents overall said they had used or were interested in using social media channels to buy luxury products.

Prada nears 鈧�1.5 billion deal to acquire Versace: The move would give the luxury company broader appeal as spending cools.

Zara has moved upmarket with price increases and haute couture partnerships, while H&M has shifted toward secondhand retail, repairs, and recycling. Luxury brands are accelerating their digital transformation. The likes of Herm猫s and Gucci have invested heavily in their ecommerce platforms, while high-end department store Printemps is partnering with personal shopping-on-demand app Beamble.

Less than a third of US consumers with a household income of more than $100,000 see fast food as a luxury, compared with 71% of consumers with an income of less than $30,000, according to April 2024 data from LendingTree.

Only 47% of luxury consumers plan to spend the same or more on luxury goods over the next three months鈥攁n 11-point drop since January and the lowest level since tracking began in April 2023.

That鈥檚 forcing companies to lower prices to lure budget-conscious travelers and beef up their luxury offerings to strengthen ties with wealthier consumers.

What retail and ecommerce categories are most exposed to current and proposed tariffs? Most retail sectors will be affected by increased tariffs, but some are more exposed than others, including the following:. Apparel and fashion. In 2024, the EU exported over 鈧�5.0 billion ($5.41 billion) worth of apparel and accessories to the US.

Shoppers鈥� efforts to buy ahead of tariffs also likely distorted May鈥檚 retail data. That鈥檚 particularly evident in the auto category, where sales fell 3.5% MoM鈥攖he biggest decline in over a year鈥攂ut were still up 5.1% year to date.

Chinese consumers are showing a similar reluctance to spend鈥攐r even travel鈥攁broad, LVMH deputy CEO Stephane Bianchi told French lawmakers, a major problem for luxury brands heavily reliant on the cohort. Our take: While the temporary tariff reprieve gives China鈥檚 economy some breathing room, consumers are rightly wary of the impact from a prolonged trade war.

Our take: Macy鈥檚 diversified business, which includes everything from off-price to luxury, could help it stay relevant to a broader array of shoppers. At the same time, Macy鈥檚 is especially vulnerable to declines in discretionary spending, which is already under pressure as shoppers prioritize necessities amid uncertainty.

Germany鈥檚 digital landscape is evolving fast, driven by shifting consumer behaviors, increasing ecommerce adoption, and changing media habits. Recent data reveals the trends shaping digital spending, retail sales, and more.

Italy鈥檚 digital landscape is evolving fast, driven by shifting consumer and media habits and increasing ecommerce adoption. Recent data reveals the trends shaping digital spending, retail sales, and more.

The news: Unilever acquired men鈥檚 personal care brand Dr. Squatch鈥攚hich recently made headlines for offering soap containing actress Sydney Sweeney鈥檚 bathwater鈥� for an undisclosed amount as it looks to establish a greater foothold in the fast-growing category. It鈥檚 a notable move for a company that is otherwise shedding brands to speed its turnaround, and a clear sign that Unilever counts men鈥檚 personal care as one of the 鈥減remium and high growth spaces鈥� to prioritize. Our take: While men are hardly a monolithic entity, their optimism about the economy makes them more likely than women to increase their spending this year. At the same time, shifting consumption habits are turning male consumers into a more valuable commodity鈥攁s Saks and Unilever see only too clearly.

After just three years, the brand is already pulling in $212 million in annual revenues鈥攄espite having a grand total of 10 products in its lineup and no physical retail presence. Its upcoming launch in Sephora鈥檚 US, Canada, and UK stores could supercharge that growth by boosting brand awareness and enabling more shoppers to get their hands on Rhode鈥檚 viral lip tints.

In our exclusive survey with ESW, data from shoppers in 18 countries reveals new twists in the path to purchase, the rising momentum of marketplaces, and the resilience of age-old fundamentals.

Tapestry鈥檚 advantages: Accounting practices notwithstanding, Tapestry is confident that its product array, affordable price point, and brand building efforts position it to continue growing despite falling consumer confidence and declining interest in luxury spending.