Goldman Sachs sees luxury goods sales momentum picking up soon
XLY•XLY•XLY•XLY•Goldman Sachs Research expects luxury goods sales momentum to improve soon, despite price increases estimated at around 60% between mid-2019 and mid-2026. It says new creative leadership and stronger U.S. demand could support a recovery.
Goldman Sachs Research expects luxury goods sales momentum to improve soon and rejects the view that the sector faces prolonged stagnation. It estimates high-end brands raised prices by around 60% between mid-2019 and mid-2026, weakening demand and benefiting more affordable competitors.
New creative leadership could revive consumer interest, though shoppers likely need three to four collections to recognize changes. U.S. luxury demand has strengthened since the pandemic, prompting more store openings in a market the research considers underpenetrated.
Covered companies averaged 6% annual revenue growth over 25 years, and sales have exceeded levels implied by that rate since 2019.
