Could the USA be luxury’s next El Dorado after China?

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As a popular new destination for store openings, catwalk shows and other fashion events, the USA is thriving. The buzz around this market, especially for high-end brands, has been palpable for many months. A positive trend that was confirmed by the surprising rebound recorded by major groups and labels when they published their latest quarterly results. Enough for the US to be a promising alternative to China for the luxury industry.

Between January and March 2021, Kering’s comparable sales soared in the USA, rising by 46%, especially its online sales, which posted in the US their highest growth rate, increasing by 134%. Retail sales for Gucci, the group’s flagship brand, jumped up by 51%, while Saint Laurent’s sales rose by 46%.

In the same period, LVMH recorded a 23% increase over Q1 2020, and a 15% increase over Q1 2019. And this while the Covid-19 pandemic is still a factor in the country. The sales rise recorded by Hermès was instead 23%. “The US has resumed growing, having started to do so at the end of 2020, and has recorded a positive Q1 despite local restrictions,” underlined Hermès at its results’ publication.

Sales for Salvatore Ferragamo have increased by 18.2% at constant exchange rates in North America. Michele Norsa, the Florentine label’s executive vice president, said that tourist destinations such as Miami, Las Vegas and Los Angeles are experiencing a bona fide luxury shopping bonanza, triggered by “revenge shopping” following months of frustration.

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