This could be it for one of the least likely bull runs in fashion.
While the early COVID-19 lockdowns hit the industry hard, forcing scores into bankruptcy, many companies took the opportunity to retool and come back stronger. Some, including DKNY parent G-III Apparel Group, posted their best year as the sector bounced back in 2021. And luxury in general has been going from strength to strength.
But this could be as good as it gets.
Companies across the retail spectrum are priming investors for a change, acknowledging the risks of war and inflation and saying the consumer is holding on.
For now.
“We haven’t seen much change in customer shopping behavior yet,” said Brett Biggs, Walmart Inc.’s chief financial officer, at an investors conference this month. “Typically, when fuel prices go up, for us, you’ll see some consolidation in trips. Traffic might go down a little bit, transaction dollars will go up….When you look at all the metrics, you look at unemployment is low, wage rates are high, customer balance sheets are still pretty good. Savings rates are still pretty good. There’s a lot of things that still feel pretty good from a consumer standpoint.”
On the other end of the price spectrum, luxury coat brand Moncler addressed the commercial toll of the war in Ukraine, noting, “Although the uncertainty regarding the development of the situation and its possible impacts on global economies remains very high, significant consequences on full-year…
