蘑菇AV

Ralph Lauren and Canada Goose defied luxury slowdown in Q1: But tariffs and uncertainty could reverse that momentum.

With luxury poised for a modest recovery in 2025, brands and retailers need to understand consumers鈥� buying habits and intentions in the world鈥檚 largest personal luxury goods market to win a share of spending.

Luxury brands rethink China approach as downturn drags on: Labels like Versace, Valentino, and Balenciaga are dialing back discounts, telegraphing exclusivity to wealthy shoppers.

The insight: Amazon is trying to make a bigger name for itself in the luxury sphere鈥攁 strategy that could help soften the blow from tariffs. Our take: That designer brands and retailers are eager to partner with Amazon despite its mixed track record in luxury shows the state of the industry, which is under serious pressure as economic uncertainty saps even affluent consumers鈥� desire to shop. Amazon鈥檚 extensive reach鈥攖hree-quarters of US households are Prime users, per our forecast鈥攁nd ability to drive spending even in times of volatility are making it an increasingly valuable partner for any brand looking to drive sales in an unsettled environment.

The news: Hotel companies are expanding their upscale offerings to capitalize on strong demand for unique and customized accommodations among affluent consumers. Our take: Luxury and lifestyle brands are weathering economic ambiguity better than economy lodging. This divergence indicates that upscale, experiential offerings will be more resilient, while economy hotels face headwinds from cost-conscious consumers.

The news: Gen Z is preparing an ambitious lineup of summer fun鈥攊ncluding domestic and international travel, shopping and dining, and vacation upgrades鈥攖o a degree that outstrips millennials, Gen X, and baby boomers, per a study by Bread Financial. Our take: Gen Zers invest in work/life balance and are willing to spend to maximize their R&R experiences. Brands should meet this generation with luxury-first options and seamless experiences to maximize their return on investment for the younger cohort willing to spend to make a good time a great one.

The insight: The US is mired in the 鈥渨orst housing market in almost 50 years,鈥� RH CEO Gary Friedman said during the company鈥檚 Q1 earnings call, as high housing costs and economic uncertainty chill demand. Our take: With the sluggish housing market showing few signs of improvement, retailers must lean into any pockets of opportunity they find. For RH, that鈥檚 burnishing its luxury credentials and pushing deeper into hospitality, while Wayfair is leaning on its diverse supplier base. The resilient pro market is another area companies should look to take advantage of as they try to ride out the downturn.

The news: Saks Global鈥攖he roughly year-old troubled parent company of Saks Fifth Avenue and Neiman Marcus鈥攕ays it is finding its footing and has no plans to close stores, Retail Dive reports. Our take: Saks Global needs more than fresh financing鈥攊t needs a clear strategy that will make clear how it can navigate economic headwinds and rebuild trust with suppliers. With luxury spending softening as consumers grow more cautious, execution in the months ahead will be critical鈥攏ot just for stability, but for long-term survival.

The news: As the 2025 economy tightens under the pressure of tariffs, AI disruption, and shifting global trade policy, brands are embracing adaptability. Retail growth forecasts have been slashed, inflation-wary consumers are scaling back, and even luxury sentiment is weakening. Our take: Resilient brands are leaning into agile planning, reallocating media spend to ROI-focused channels like search and digital out-of-home, and anchoring value in trust and quality鈥攏ot just price. As emotional volatility shapes consumer decisions, marketers who show relevance and reassurance will lead. The brands that win won鈥檛 wait for stability鈥攖hey鈥檒l build strategies that succeed amid constant change.

China is a global leader in online shopping, with high digital buyer and retail ecommerce penetration. Shoppers are comfortable buying luxury goods online and embracing livestreaming commerce.

Burberry will cut 20% of global workforce as sales slump continues: The company鈥檚 ill-timed brand elevation push puts it in a difficult position to weather luxury headwinds.

Millennials and Gen Zers can finance snow sport luxury with BNPL鈥攂oosting Affirm鈥檚 non-retail volume.

2025 could be another tough year for luxury companies: LVMH鈥檚 rough Q1 reveals considerable challenges as US spending drops.

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.

Luxury brands are grappling with downturns in the US and China, the largest markets for personal luxury goods, and will have to seize opportunities for growth from new markets and product innovation.

Prada鈥檚 Versace deal comes at a difficult time for the luxury industry: Tariffs are threatening brands鈥� access to US consumers, while recession fears could trigger more conservative tastes.

HBO's hit show 鈥淭he White Lotus,鈥� is extending its off-screen influence with a series of retail partnerships. Though the show revolves around miserable rich people on vacation, it keeps viewers engaged with fashion, scenery, and unattainable luxury. Brands including Banana Republic, H&M, and Kiehl鈥檚 have seized the opportunity.

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.

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

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