US shoppers to spend more this holiday season

The holiday season is upon us. As prices remain high, the luxury downturn persists and the country grapples with the outcome of the presidential election, what can retailers expect from US shoppers?

The latest round of earnings shows how strained the US consumer still is. Brands from Ferragamo to Nike saw drops in US revenues in their most recent reports. Kering recorded a 15 per cent dive in North America, though this is relative to the company’s overall struggle (Asia, by comparison, dropped 30 per cent). LVMH’s fashion sales remained flat in the region. On Thursday, US-based Tapestry and Ralph Lauren’s earnings boded better. Tapestry’s North America revenues were down just 1 per cent, and this was partly due to a planned reduction in wholesale. And, at Ralph Lauren, North America revenues were up 3 per cent, after dipping the quarter prior.