The Trends in Luxury Spending in the US

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Prada and LVMH said that their sales in the US had contracted by about 1%. Rishmahl, which owns Cartier, saw sales in the Americas down up 2%. Burberries were down 8%. So we went looking to find out what's happening here. And it seems as though we got a couple of things going on. There is this normalization after this splurge in luxury spending earlier in the pandemic. We're seeing some of the more inflation sensitive customers who may not be the really rich super luxury buyers but are pulling back. A lot of Americans, they are buying the Chanel dress are in Paris rather than at the Chanel store in Midtown

Investors are increasing their bets that Europe will sink into a painful economic downturn, and luxury groups are bracing for the end of the post-pandemic recovery boom. Plus, the FT’s Tokyo bureau chief Kana Inagaki explains why Nissan’s focus on regaining ground in China might be a bit of an uphill battle.

Mentioned in this podcast:

Investors turn gloomy over Europe’s economic outlook

Luxury sector slows after ‘bonkers’ post-pandemic spending spree

Why Nissan’s woes in China are not just about electric vehicles

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. Additional help from Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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