The CEO and founder of the Travel Agency One Luxury Dominica Gracie has been seen wearing a golden vintage Alhambra bracelet from Van Clefe and Arpels, a golden love bracelet from cartier, a golden just UN Claus Nail Bracelet from Cartier and an essential Lines Bracelet from Cartier.
Moritz Scholz | Getty Image Entertainment | Getty images
Luxury Retail was expected to stage a turnaround in 2025 after a fourth quarter after holiday shopping and post -election enthusiasm. Instead, according to Citigroup data, the cost of US credit card fell on luxury goods during the first five months of the year compared to the same period in 2024.
For the month of May, luxury expenses performed better than expected, a dip of 1.7% year -on -year, a decline of 6.8% in April and 8.5% in March. Top luxury brands joint expenses, such as ErmasAccording to the bank’s analysis of the bank’s transaction by more than 10 million US card holders, even an increase of 0.2% on an annual basis.
However, these benefits are not equally distributed. Jewelry has proved to be a bright place, which performs consistently with leather accessories and other categories such as ready-to-wier.
According to the city, monthly spending on luxury jewelry has increased every month since September. In May, the total luxury jewelry expenses rose in 10.1% year.
What is more, while other categories were provoked by an increase in average spending by the customer, jewelry was the only product type that also saw an increase in individual customers. Within the jewelry category, however, a group of high -end brands lost 2.7% of the customers, but those who spent an average of 11.7% more.
CITI analyst Thomas Chouvet told CNBC that the possibility of sales was with the perception of jewelry as investment pieces. Jewelry can also take more emotional value, he said, as a gift or to celebrate a life milestone.
“When you have $ 3,000 to spend on luxury, you know, are you going to buy jewelry or a piece of handbags for the same price?” He said. “Perhaps the piece of jewelry gives you a better internal value given the contents of precious metals and better emotional value and meaning.”
Chouvet said that recently provides run-ups and justification in gold prices.
He said, “It is now sensible to buy a cartier bracelet, given that he has increased prices by 5% since the onset of 2025, when gold prices have been appreciated by more than 25%,” he said.
On the other hand, handbag brands have increased prices from 30% to 40% continuously because the consumer is getting more exploded for their deer without an epidemic.
“Handbags offered limited newness,” Chouvet said, with warnings that some decline and 2025 collections of winter showed some promises. “In the last five years, from brand A to brand B, it is very difficult to separate most bag sizes and styles from each other.”
Luxury clock expenses have seen some benefits this year, but are consistently low compared to jewelry. In addition to all luxury watch brands, increased by 14.7% compared to May 2024. However, the results of top watch brands fell 10% on an annual basis in May.
While increasing Swiss watch export Chouvet has stated that it was largely operated by retailers and in the President’s response to American subsidiaries, the product was run by retail vendors. Donald TrumpThreatened 31% tariff on Swiss goods.
The expenditure of expenditure in May reflects an uplift in consumer spirit, but not necessarily a significant twist for high end shopkeepers as per Chouvet. While equity markets have rebounded, the US dollar is less than 10% of the years till date.
“We know that American consumer feels better about life when the dollar is stronger,” he said. “An example of this in luxury has the ability to travel and spend abroad on luxury, a strong dollar.”
Consumers larger the other potential threats to spend. Trump’s so-called mutual tariffs are less than two weeks since the end of the 90-day break, and the Iran-Israel struggle has raised oil prices, said Chouvet said.
