The record-high inflation, changes in consumers’ spending patterns, and concerns about the Federal Reserve’s monetary policy tightening are slowing down all parts of the economy, including demand for luxury goods. However, some Wall Street analysts are optimistic regarding the growth of luxury goods companies.
“Luxury brands should outperform, as they will likely continue to have pricing power, which will keep margins elevated, and they could see a boost as international travel returns to pre-pandemic levels,” said Zachary Warring, an analyst with CFRA Research.
