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Apparel retail has experienced significant setbacks in recent years, from the COVID-19 pandemic to supply chain disruptions to inflation – and now the emerging threat of tariffs. Yet, the sector continues to adapt. We took a look at the overall performance of the luxury apparel segment to see how things are holding up as the year's first half draws to a close.
Luxury Visit Growth
The current economic climate has posed significant challenges to the apparel retail segment, and luxury retail has not been immune. The category saw its visits slow year-over-year throughout 2024, likely owing to the accumulated strain of inflation and rising prices. Yet, a surprising opportunity is now emerging, stemming from an unexpected catalyst: tariff concerns.
While apparel visits (excluding the off-price segment) generally slowed year-over-year, luxury apparel experienced only a single month of visit declines – in February '25 – likely owing to the comparison to a leap year and a longer February 2024. And more recently, luxury apparel has been performing especially well, with the segment seeing year-over-year (YoY) increases of 4.7% and 4.4% in April and May 2024, respectively – perhaps driven by the risk of price hikes and the uncertainty around the current tariff landscape.
Affluent Suburban Consumers Driving Visit Strength
Diving into the audience composition for nationwide luxury brands reveals that the category's current strength is likely driven in part by a more affluent and more suburban consumer base. Over the past four years, the median household income (HHI) in luxury chains' captured market has increased – rising from $101.9K in May 2025 to $108.0K in May 2025. During this period, the share of suburban consumers in the category's trade area also grew, from 39.1% in May 2022 to 41.9% in May 2025.
This suggests that the luxury sector's current resilience is being powered by an increasingly affluent and suburban clientele who are likely better insulated from broader economic pressures.
Luxury Leads the List
Despite operating in a challenging environment, luxury retail is finding ways to keep its visits up. Will the segment continue to rally?
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