The insight: The gulf between top-tier luxury brands like Brunello Cucinelli and the rest of the market is widening as ultra-wealthy consumers become the primary growth driver for the industry.

• The top 0.1% of luxury shoppers accounted for 23% of sales in 2024, according to Boston Consulting Group (BCG), while aspirational customers’ share of spending contracted.
• Roughly 1 in 3 aspirational shoppers has reduced or paused luxury spending in the past 12 months, per a survey by BCG and Altagamma, as price hikes and financial concerns make designer purchases an indulgence fewer can afford.

The big picture: US consumers’ love affair with luxury goods is cooling. Economic uncertainty—and a weakening dollar—has made overseas shopping sprees considerably less appealing, while the sheer expense of buying luxury goods these days is driving shoppers to either seek out deals on resale platforms or curb spending altogether.

• US credit card spending on luxury items declined in the first five months of 2025 compared with 2024, according to Citigroup data reported by CNBC.
• Just 28% of luxury consumers are optimistic about the state of the economy, per the June edition of Saks Global Luxury Pulse. Less than half (47%) plan to maintain or increase their spending in the next three months, the lowest level in two years.

Brands like Brunello Cucinelli and Hermès are the exceptions that prove the rule. Both companies have remained largely unscathed by the overall decline in luxury spending, thanks to a clientele that is for the most part immune to economic volatility and for whom price is no object.

• Brunello Cucinelli reported growth across all regions in H1—including double-digit increases in China and Europe.
• The company expects sales to rise 10% YoY this year, a marked contrast to the luxury industry’s otherwise stagnant performance.

Our take: Luxury brands have to work harder than ever to win over cautious consumers. While many are chasing the money by recalibrating their assortments—and price points—to woo high-net-worth individuals, this strategy could backfire by making brands even less appealing to the aspirational shoppers who still account for the majority of luxury sales.