Ralph Lauren, Michael Kors defy consumer slowdown
STORY: There were fresh signs Tuesday (August 9) that luxury labels are defying the global cost-of-living crunch.
Ralph Lauren said it saw revenue rise over 8% to almost $1.5 billion during the latest quarter.
That was comfortably ahead of analyst estimates.
It was a similar story over at Capri Holdings.
That’s the owner of Michael Kors, Jimmy Choo and Versace.
Sales there also gained over 8%, beating analyst forecasts.
The new numbers come after similar figures from European rivals LVMH and Gucci-owner Kering.
It seems rising prices are having little impact on spending by middle- and high-income households.
They’ve been shopping with abandon, having built up substantial savings during lockdowns.
New health restrictions in China are proving less welcome for luxury brands though.
Asian revenue at Michael Kors - Capri’s biggest brand - fell over 16% after new lockdowns in China hit demand there.
Jimmy Choo and Versace also took a hit in the region.
