Source: The Business of Fashion
Citi's credit card data shows a sustained pullback in US luxury consumption. Affluent consumers are tightening discretionary spending after months of resilience, not pausing temporarily. Luxury brands have relied on wealthy Americans' spending to offset middle-market weakness. A sustained pullback here signals either genuine income anxiety among high earners or a rational recalibration after pandemic-era excess—both threaten full-price positioning and inventory health heading into the holiday season.