U.S. Luxury Market Slows as Economic Uncertainty Looms, Saks Global Reports

Luxury is losing steam in the U.S., but not sinking. According to the latest Saks Global Luxury Pulse survey, conducted by Saks Global, the world's largest multi-brand luxury retailer, which measures purchase intent among the nation's affluent consumers, consumers perceive imminent risks to U.S. economic health, but are not particularly restrained in their desire to buy.

Spending intent has moderated compared to other recent surveys. According to the data, 47% of consumers are planning to spend the same or more on luxury items in the next three months. This is the lowest level since Saks began conducting them in April 2023, and a decrease of eleven percentage points compared to the previous survey.

The horizon is not all gray, however. The survey notes some optimism about their perception of their personal finances, something that ties closely to luxury spending. "Luxury consumers are the last ones out and the first ones in," explains Emily Essner, president and chief commercial officer of Saks Global in statements picked up by WWD. She means they are the last to stop spending in the face of an economic downturn and the first to resume spending when it is resolved.

Consumers are becoming more selective when it comes to choosing luxury products, but they continue to spend.

28% of respondents say they feel optimistic about the economy, down 13 percentage points from the previous survey conducted in January 2025 and down 17 percentage points from the survey conducted in April 2024.

According to the survey, consumers are becoming more selective when it comes to investing in luxury goods. Top concerns include the overall social and political climate, a possible recession, financial security and stock market volatility. Tariffs ranked sixth by level of concern.

As for the luxury sector, 32% feel reassured, down 13 percentage points from the previous survey and down 22 percentage points from the same period last year.

For the fiscal year ended February 1, Saks reported revenues of $3.8 billion. This included approximately $432 million in sales from the Neiman Marcus Group, which was acquired on Dec. 23. When incorporating the Neiman business for the full year, sales fell 10% to $7.3 billion.