First-half **** results show luxury demand concentrating at the top end of the market. Aspirational consumers, long an important growth source, have become more cautious as higher prices and softer discretionary spending reduce their engagement with luxury brands. Wealthier clients, by contrast, have remained more resilient. Luxury demand is polarising, prompting fashion and apparel houses to reassess pricing, product mix and distribution. That change is reaching the textile, leather and apparel suppliers that support the sector.
Prada Group’s first-half revenue rose ** per cent at constant exchange rates to €*.*** billion (~$*.** billion), while organic growth excluding newly consolidated Versace was * per cent. Miu Miu retail sales increased *.* per cent in the first half, despite a strong prior-year comparison. Hermès grew *.* per cent at constant exchange rates, with chief executive officer Axel Dumas saying its wealthier customers had remained more resilient than its aspirational customers. Pressure is more visible where aspirational demand matters more: Moncler brand revenue in EMEA fell * per cent in the second quarter and * per cent in the first half at constant exchange rates, while Ferragamo’s wholesale channel fell **.* per cent in the first half at constant exchange rates. Gucci, meanwhile, remained in decline but improved, with comparable revenue down * per cent in the second quarter versus an * per cent decline in the first.
Luxury’s price reset is driving aspirational buyers away
