Goldman Sachs expects revenues of major listed luxury brands to rise 7 per cent in 2027, a recovery after several sluggish years, with the US likely to remain the bright spot. Headwinds include China's prolonged property slowdown, US tariffs in 2025, volatile equity markets, higher interest rates and geopolitical tensions. The report blames sharp post-Covid price rises, which lifted traditional high-end luxury prices by an estimated 60 per cent between mid-2019 and mid-2026, and limited innovation for weaker demand, though new CEOs and creative directors are now working to revive interest. US luxury demand has picked up strongly despite high wealth, after years of low spending possibly linked to guilt or outlet culture. Goldman also outlined seven long-term growth factors, including store locations, product categories such as jewellery, wealthy consumers' resilience, creativity, brand identity and ownership structures.
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Original headline: Global luxury goods industry set for recovery in 2027 , US to remain bright spot : Goldman Sachs
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| Market | US stocks |
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- Global luxury goods industry set for recovery in 2027 , US to remain bright spot : Goldman Sachs
Goldman Sachs projects revenue at major listed luxury brands to grow 7% in 2027 after several years of sluggish sales, with the US remaining a bright spot as American consumers' appetite for luxury has picked up strongly. The report suggests post-Covid price hikes played a larger role in the slowdown than other factors such as China's property slump, 2025 US tariffs, higher interest rates and geopolitical tensions, with prices of traditional high-end brands up an estimated 60% between mid-2019 and mid-2026. Looking further ahead, it outlines seven factors, the 'seven Cs', that could determine luxury brands' growth, noting that larger brands have advantages in store locations and wealthy consumers are more resilient to slowdowns. It also highlights creativity, consistent brand identity and ownership structures, as many luxury businesses remain family-owned or family-run.
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