NEW YORK — Luxury firms have been on a roll, enjoying robust sales as consumers remain hungry for pricey merchandise. But for at least one economist, this is as good as it gets.
Carl Steidtmann, chief economist of Deloitte Research, said Wednesday, “It’s been awfully good for these luxury firms. So good that it would be hard to imagine it getting better. The luxury retailers have had a terrific run, which is typical of an economic recovery.”
He said tax cuts affecting higher-income households, such as dividend income from equity holdings, and strong growth in home prices have contributed to the recovery. Those same factors, however, also are contributing to a slight softening of the economy, which could cool the hot luxury market.
“Home prices have started to weaken and the benefits from the effects of a tax reduction are beginning to pass. The economy is beginning to flatten out and spread out. You’ll see luxury goods retailers doing OK, but not necessarily better than what they’ve been doing in terms of growth,” the economist said.
Steidtmann predicts overall retail growth for the balance of 2005 to be between 6.5 and 7 percent. That rate of growth, Steidtmann acknowledged, is still pretty good, but slower than the 8.3 percent rate of growth for retail in general over the last six months.
Steidtmann expects the job market to stay fairly strong, with a pickup in employment growth of between 200,000 to 250,000 jobs created every month. That at least should keep a certain amount of cash flowing into the household sector.
And, with the stock market expected to continue rising, merger and acquisition activity is going to continue, the economist said.
“A rising stock market creates an expectation for businesses that stock prices will rise. One reason for buying now is the anticipation of rising value of that equity, and the idea that one can get a better deal today than tomorrow,” he explained.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)