Luxury goods suffers from recent consumer behavior

Mon, 08/26/2024

by Ellie LeTu

Source: WSJ

• Decline in used luxury goods

  • Signals a slow recovery for new luxury goods.

  • Watches is the worst performance category - Richemont LVMH, and Hermes reported sales drop.

• Low demand driven by consumer behavior

  • Consumers are prioritizing travel over luxury purchases.

  • Speculators are moving away from luxury watches to avoid tying up assets in unsold inventory.

  • While this benefits watch collectors, it poses challenges for sales growth in the luxury goods industry.