Goldman Sachs expects revenues of major listed luxury brands to grow 7% in 2027 after several sluggish years, with the US likely to remain a 'bright spot'. The report cites challenges such as China's property slowdown, 2025 US tariffs and geopolitical tensions, but says sharp post-Covid price increases, with traditional high-end brand prices up an estimated 60% between mid-2019 and mid-2026, played a larger role in slowing growth. American demand for luxury has picked up strongly, after years of a gap between high US wealth and weak luxury spending, which was partly attributed to a 'guilt factor' or 'outlet culture'. Goldman also outlined seven key factors, or 'seven Cs', for long-term growth, including brand scale, category strength, resilient wealthy consumers, creativity and ownership structures.
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- Global luxury goods industry set for recovery in 2027 , US to remain bright spot : Goldman Sachs
Goldman Sachs expects revenues of a basket of large, publicly traded luxury-goods makers to grow 7% in 2027 after several years of sluggish sales, with the US seen as a bright spot. The industry has faced headwinds including China's prolonged property slowdown, US tariffs in 2025, higher interest rates, upcoming US midterm elections and the Middle East conflict. The report says sharp price increases after Covid-19 played a larger role, with prices of traditional high-end brands rising an estimated 60% between mid-2019 and mid-2026, which reduced consumer interest and store traffic. Meanwhile, American appetite for luxury goods has picked up strongly, narrowing the gap between high US wealth and previously low luxury spending. The report also outlines seven factors, the 'seven Cs', that could determine brand growth, including scale, the spending power of wealthy consumers, creativity and ownership structure.
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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.
- 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, with the US likely remaining a 'bright spot.' The industry has been hit by China's prolonged property slowdown, 2025 US tariffs, volatile equity markets, higher interest rates and Middle East tensions. The report says a larger factor was sharp post-Covid price increases: prices of traditional high-end brands rose an estimated 60% between mid-2019 and mid-2026, reducing consumer interest and store traffic. American demand for luxury has picked up strongly after years of weak spending despite high wealth. Goldman also outlined seven factors, or 'seven Cs,' that could determine brand growth, noting that larger brands gain better store locations and wealthy consumers make high-end brands more resilient to slowdowns.
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