Ralph Lauren and Tapestry reported standout Q3 results as the strength of their brands and product assortments helped insulate them from broader weaknesses in the luxury and apparel industry. Their successes show that demand for accessible luxury is recovering. But they also demonstrate the challenge of appealing to consumers’ lofty expectations. With more immediate concerns like grocery prices and labor market uncertainty pressuring discretionary purchases, companies need to be laser-focused on delivering high-quality, on-trend assortments.
After years of athleisure dominating closets, denim jeans are back in the spotlight. As brands reinvest in fit, quality, and cultural relevance, the US denim market is set to reach $21.5 billion by 2028, according to Euromonitor International.
Nintendo reported blockbuster financial performance for its most recent quarterly earnings, with revenues surging over 90% YoY and profits rising more than 270%, per CNBC. This growth is largely driven by the successful launch of its Switch 2 flagship console, which debuted in June. As gaming consumption shifts to handheld and hybrid devices, brands should explore partnerships and placements that align with Nintendo’s highly curated experiences rather than disrupt it. Because Switch 2 and its games are ad-free, brands can engage players through co-branded campaigns, limited-edition content, and cross-platform tie-ins on Twitch, Discord, YouTube, and social media.
Hasbro and Mattel enter the 2025 holiday season on divergent paths after contrasting Q3 results. Hasbro outperformed expectations and raised its outlook, fueled by strong growth in its Wizards of the Coast and digital gaming divisions, while Mattel missed estimates and kept guidance steady amid cautious retailer orders and tariff pressures. Despite broader industry growth, slowing consumer demand and higher costs pose headwinds. With Hasbro’s diversified mix offering resilience if toy sales weaken, Mattel’s reliance on traditional toys could make it more vulnerable to price-sensitive shoppers this holiday season.
A string of solid earnings from Kering, Prada, LVMH, and Hermès could be a sign of a broader sector turnaround. All four companies cited improving conditions in the US and China, the two largest markets for luxury goods. A recovery in China would be a particular relief, as brands have struggled to engage consumers worried about the country’s property crisis and other economic challenges.
LVMH is reportedly exploring a sale of its 50% stake in Fenty Beauty, according to Reuters. The move comes on the heels of Kering selling its beauty unit to L’Oréal for €4 billion ($4.3 billion)—suggesting that, after years of aggressive expansion, the two luxury conglomerates are taking a more targeted approach to growth. The market for beauty—particularly cosmetics—is showing signs of softening, which could explain LVMH’s desire to sell. But it’s more likely that LVMH is attempting to raise cash ahead of a potential bid for Armani
Adidas raised its full-year earnings guidance to about €2 billion ($2.32 billion) after stronger-than-expected global results. Currency-neutral sales rose 12% year-over-year, led by double-digit growth across all major regions, while operating profit surged 58%. Gross margin improved to 51.7% despite currency and tariff pressures. The company is countering headwinds through pricing strategies and supply shifts, gaining ground as Nike continues its turnaround. With demand for its Samba and Gazelle lines boosting apparel and accessories sales, Adidas appears to be solidifying its momentum and strengthening its competitive position in key markets.
Kering is selling its beauty business to L’Oréal for €4 billion ($4.3 billion). The move will give Kering a much-needed cash infusion as it carries out a turnaround under new CEO Luca de Meo, while positioning L’Oreal to become a leader in luxury fragrance and beauty. The sale marks a bold first step by de Meo, who has the challenge of revitalizing Kering’s business amid considerable uncertainty in the luxury market. And it is a major strategic move for L’Oréal, positioning it as one of the world’s top producers of luxury fragrances at a time when the category is a driving force behind beauty growth.
Saks Global has halved its full-year profit forecast to about $150 million after reporting a 13% year-over-year sales drop and a $77 million quarterly loss, Bloomberg reports. Less than a year after acquiring Neiman Marcus, the merger’s promise of creating a luxury powerhouse is faltering as Saks struggles with vendor payments, mounting debt, and withheld merchandise ahead of the holidays. The company’s weakened position gives competitors like Nordstrom and Bloomingdale’s an opening to capture its customer base, underscoring how fragile even top-tier retailers can be in today’s shifting luxury market.
As Primark celebrates its 10-year anniversary in the US, the European retail giant navigates the challenges of building brand awareness in a competitive American market while staying true to its core value proposition that made it a cultural institution in the UK and Ireland.
As the murky economic climate leads consumers to adjust their spending priorities, they're looking for luxury brands that can sell them more than a status symbol. Some 88% of high-income consumers now define status by knowledge rather than material possessions, according to a new report by Team One’s Global Affluent Collective.
LVMH unexpectedly returned to growth in Q3 following two quarters of contraction. The company's burst of momentum is a positive sign for the luxury industry, which has otherwise had a difficult year as consumers worldwide rethink spending amid considerable uncertainty. But to keep it going, LVMH will have to deliver freshness and creativity.
Amid a challenging economic climate, luxury brands seek new ways to prove value to and win over young shoppers. By serving food and drink alongside products, retailers are turning stores into places where consumers can linger, connect, and spend. Coach’s coffee strategy is a prime example.
Fast Retailing, the parent company of Uniqlo, reported record profits for the fiscal year ended August 31, with sales up 9.6% and operating income rising 12.6%, surpassing forecasts. Growth was driven by strong performance in North America and Europe, where revenues jumped 24.5% and 33.6%, respectively. As China’s economy slows, the company is accelerating expansion in Western markets with new flagship stores planned in major cities. Despite potential challenges from US tariffs, Uniqlo’s focus on value, strategic retail investment, and market discipline positions it to gain share as rivals face rising regulatory and cost pressures.
Most (53.7%) visits to US fashion and apparel websites came from direct traffic between July 2024 and June 2025, per an August SimilarWeb report.
Apparel companies that don’t adjust their merchandising strategies in response to rising GLP-1 usage could be stuck with up to $5 billion in excess inventory and costs, according to a report by Impact Analytics. While there are indications that rising GLP-1 adoption is increasing demand for smaller sizes, that shouldn’t be an excuse for brands to reduce plus-size production or jettison inclusive sizing. Companies that move too aggressively to reduce plus-size assortments could alienate customers and lose sales.
Over half (56%) of US luxury consumers plan to maintain or increase their spending in the next three months as of July 2025, a sharp rebound from April's low of 47%, according to a September 2025 report from Saks.
To promote its new NextGen Acela fleet, Amtrak invited students from New York School of Design to compete in a competition to produce “Trak Suits” in two categories: one couture look and one ready-to-wear for consumer purchase.
Ralph Lauren is expanding its hospitality empire, with plans to open a new Polo Bar restaurant in London in 2028. That outpost will join others in New York, Milan, Chicago, Chengdu, and Paris. With luxury sales under pressure as aspirational customers pull back, hospitality concepts are an opportunity for brands to keep shoppers engaged and maintain heat. By deliberately courting social media attention, and using tactics like exclusive merchandise to build excitement, brands can create more opportunities for customers to spend time (and money) on their properties.
Nike returned to growth in fiscal Q1, snapping a four-quarter streak of declining sales. Nike is beginning to see the light at the end of the tunnel, as Hill’s turnaround plan begins to make headway despite considerable uncertainty. While tariffs are weighing on margins, investments in new product lines are beginning to restore brand heat.