Latest news with #consumerdemand
Malay Mail
4 days ago
- Business
- Malay Mail
Well-heeled US shoppers shrug off price hikes on Birkenstocks and Bugaboo strollers — for now
LONDON, Aug 16 — Well-heeled shoppers around the United States seem — so far at least — willing to soak up price hikes for aspirational products from trendy Birkenstock sandals to Bugaboo prams, despite the impact of trade tariffs and belt-tightening elsewhere. German sandal and clog brand Birkenstock has enjoyed strong consumer demand with little pushback from US retailers since hiking prices at the start of July, its chief executive said on Thursday. As brands raise prices and cut costs to mitigate the impact of higher US tariffs on their imported products, a key question is the extent to which consumers will be put off and buy less, or simply walk away from purchases. Comments from Birkenstock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, affluent consumers are shrugging off price hikes. 'We saw no pushback or cancellations following the July 1st price increases implemented in response to tariffs,' Birkenstock CEO Oliver Reichert told analysts on a call, adding demand for the brand has been 'tremendously strong.' Bank of America, the largest consumer facing US bank, said this week that middle- and upper-income earners spent more on their credit cards in July than the same month last year. In contrast, spending among the lowest income bracket remained flat, the bank found. Overall US consumer spending may stay strong, Bank of America said, as long as higher-income individuals keep spending. Lower-income earners account for only 15 per cent of all US consumer spending, according to Bank of America. However, Procter & Gamble, maker of Tide detergent, reported signs of spending cutbacks among higher-income consumers, indicating that shoppers may be becoming more selective with their purchases. Bugaboo, a Netherlands-based maker of expensive baby gear, also raised prices on its strollers, high chairs and play pens by US$50 (RM210) to US$300 in May because of US tariffs. Retailers were open and accepting. 'In general, we did not see any pushback. They are like us. They understand it is a fluid situation,' Chief Commercial Officer for North America, Jeanelle Teves, said. Bugaboo manufactures in China and sells strollers for more than US$1,000 at Target, Nordstrom, Bloomingdales and independent mom and pop stores. Coach handbags also remain in strong demand despite a gloomier economic outlook: the brand drew in more than 4.6 million new customers in North America this year, many of whom are Gen Z and millennials, Tapestry CEO Joanne Kuvoiserat said on Thursday. Coach, whose popular Tabby shoulder bags retail for US$350, will maintain its operating profit margin despite the pressure of tariffs, Kuvoiserat said. Ralph Lauren, meanwhile, raised its annual revenue forecast as shoppers snapped up items like its US$398 Polo Bear sweaters. But consumers' behavior in the coming months remains hard to predict, CEO Patrice Louvet highlighted on a conference call with analysts. 'The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment. So that's what we're watching very closely as we head into the second half.' — Reuters
Yahoo
5 days ago
- Business
- Yahoo
Well-heeled shoppers shrug off price hikes for Birkenstocks and Bugaboo strollers for now
By Helen Reid LONDON (Reuters) -Well-heeled shoppers around the United States seem - so far at least - willing to soak up price hikes for aspirational products from trendy Birkenstock sandals to Bugaboo prams, despite the impact of trade tariffs and belt-tightening elsewhere. German sandal and clog brand Birkenstock has enjoyed strong consumer demand with little pushback from U.S. retailers since hiking prices at the start of July, its chief executive said on Thursday. As brands raise prices and cut costs to mitigate the impact of higher U.S. tariffs on their imported products, a key question is the extent to which consumers will be put off and buy less, or simply walk away from purchases. Comments from Birkenstock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, affluent consumers are shrugging off price hikes. "We saw no pushback or cancellations following the July 1st price increases implemented in response to tariffs," Birkenstock CEO Oliver Reichert told analysts on a call, adding demand for the brand has been "tremendously strong." Bank of America, the largest consumer facing U.S. bank, said this week that middle- and upper-income earners spent more on their credit cards in July than the same month last year. In contrast, spending among the lowest income bracket remained flat, the bank found. Overall U.S. consumer spending may stay strong, Bank of America said, as long as higher-income individuals keep spending. Lower-income earners account for only 15% of all U.S. consumer spending, according to Bank of America. However, Procter & Gamble, maker of Tide detergent, reported signs of spending cutbacks among higher-income consumers, indicating that shoppers may be becoming more selective with their purchases. Bugaboo, a Netherlands-based maker of expensive baby gear, also raised prices on its strollers, high chairs and play pens by $50-$300 in May because of U.S. tariffs. Retailers were open and accepting. "In general we did not see any pushback. They are like us. They understand it is a fluid situation," Chief Commercial Officer for North America, Jeanelle Teves, said. Bugaboo manufactures in China and sells strollers for more than $1,000 at Target, Nordstrom, Bloomingdales and independent mom and pop stores. Coach handbags also remain in strong demand despite a gloomier economic outlook: the brand drew in more than 4.6 million new customers in North America this year, many of whom are Gen Z and millennials, Tapestry CEO Joanne Kuvoiserat said on Thursday. Coach, whose popular Tabby shoulder bags retail for $350, will maintain its operating profit margin despite the pressure of tariffs, Kuvoiserat said. Ralph Lauren, meanwhile, raised its annual revenue forecast as shoppers snapped up items like its $398 Polo Bear sweaters. But consumers' behavior in the coming months remains hard to predict, CEO Patrice Louvet highlighted on a conference call with analysts. "The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment. So that's what we're watching very closely as we head into the second half." Sign in to access your portfolio
Reuters
5 days ago
- Business
- Reuters
Well-heeled shoppers shrug off price hikes for Birkenstocks and Bugaboo strollers for now
LONDON, Aug 14 (Reuters) - Well-heeled shoppers around the United States seem - so far at least - willing to soak up price hikes for aspirational products from trendy Birkenstock sandals to Bugaboo prams, despite the impact of trade tariffs and belt-tightening elsewhere. German sandal and clog brand Birkenstock (BIRK.N), opens new tab has enjoyed strong consumer demand with little pushback from U.S. retailers since hiking prices at the start of July, its chief executive said on Thursday. As brands raise prices and cut costs to mitigate the impact of higher U.S. tariffs on their imported products, a key question is the extent to which consumers will be put off and buy less, or simply walk away from purchases. Comments from Birkenstock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, affluent consumers are shrugging off price hikes. "We saw no pushback or cancellations following the July 1st price increases implemented in response to tariffs," Birkenstock CEO Oliver Reichert told analysts on a call, adding demand for the brand has been "tremendously strong." Bank of America, the largest consumer facing U.S. bank, said this week that middle- and upper-income earners spent more on their credit cards in July than the same month last year. In contrast, spending among the lowest income bracket remained flat, the bank found. Overall U.S. consumer spending may stay strong, Bank of America said, as long as higher-income individuals keep spending. Lower-income earners account for only 15% of all U.S. consumer spending, according to Bank of America. However, Procter & Gamble (PG.N), opens new tab, maker of Tide detergent, reported signs of spending cutbacks among higher-income consumers, indicating that shoppers may be becoming more selective with their purchases. Bugaboo, a Netherlands-based maker of expensive baby gear, also raised prices on its strollers, high chairs and play pens by $50-$300 in May because of U.S. tariffs. Retailers were open and accepting. "In general we did not see any pushback. They are like us. They understand it is a fluid situation," Chief Commercial Officer for North America, Jeanelle Teves, said. Bugaboo manufactures in China and sells strollers for more than $1,000 at Target, Nordstrom, Bloomingdales and independent mom and pop stores. Coach handbags also remain in strong demand despite a gloomier economic outlook: the brand drew in more than 4.6 million new customers in North America this year, many of whom are Gen Z and millennials, Tapestry CEO Joanne Kuvoiserat said on Thursday. Coach, whose popular Tabby shoulder bags retail for $350, will maintain its operating profit margin despite the pressure of tariffs, Kuvoiserat said. Ralph Lauren, meanwhile, raised its annual revenue forecast as shoppers snapped up items like its $398 Polo Bear sweaters. But consumers' behavior in the coming months remains hard to predict, CEO Patrice Louvet highlighted on a conference call with analysts. "The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment. So that's what we're watching very closely as we head into the second half."
Yahoo
5 days ago
- Business
- Yahoo
Well-heeled shoppers shrug off price hikes for Birkenstocks and Bugaboo strollers for now
By Helen Reid LONDON (Reuters) -Well-heeled shoppers around the United States seem - so far at least - willing to soak up price hikes for aspirational products from trendy Birkenstock sandals to Bugaboo prams, despite the impact of trade tariffs and belt-tightening elsewhere. German sandal and clog brand Birkenstock has enjoyed strong consumer demand with little pushback from U.S. retailers since hiking prices at the start of July, its chief executive said on Thursday. As brands raise prices and cut costs to mitigate the impact of higher U.S. tariffs on their imported products, a key question is the extent to which consumers will be put off and buy less, or simply walk away from purchases. Comments from Birkenstock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, affluent consumers are shrugging off price hikes. "We saw no pushback or cancellations following the July 1st price increases implemented in response to tariffs," Birkenstock CEO Oliver Reichert told analysts on a call, adding demand for the brand has been "tremendously strong." Bank of America, the largest consumer facing U.S. bank, said this week that middle- and upper-income earners spent more on their credit cards in July than the same month last year. In contrast, spending among the lowest income bracket remained flat, the bank found. Overall U.S. consumer spending may stay strong, Bank of America said, as long as higher-income individuals keep spending. Lower-income earners account for only 15% of all U.S. consumer spending, according to Bank of America. However, Procter & Gamble, maker of Tide detergent, reported signs of spending cutbacks among higher-income consumers, indicating that shoppers may be becoming more selective with their purchases. Bugaboo, a Netherlands-based maker of expensive baby gear, also raised prices on its strollers, high chairs and play pens by $50-$300 in May because of U.S. tariffs. Retailers were open and accepting. "In general we did not see any pushback. They are like us. They understand it is a fluid situation," Chief Commercial Officer for North America, Jeanelle Teves, said. Bugaboo manufactures in China and sells strollers for more than $1,000 at Target, Nordstrom, Bloomingdales and independent mom and pop stores. Coach handbags also remain in strong demand despite a gloomier economic outlook: the brand drew in more than 4.6 million new customers in North America this year, many of whom are Gen Z and millennials, Tapestry CEO Joanne Kuvoiserat said on Thursday. Coach, whose popular Tabby shoulder bags retail for $350, will maintain its operating profit margin despite the pressure of tariffs, Kuvoiserat said. Ralph Lauren, meanwhile, raised its annual revenue forecast as shoppers snapped up items like its $398 Polo Bear sweaters. But consumers' behavior in the coming months remains hard to predict, CEO Patrice Louvet highlighted on a conference call with analysts. "The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment. So that's what we're watching very closely as we head into the second half."
Bloomberg
5 days ago
- Business
- Bloomberg
S&P 500 Margins at Risk as Producer Costs Outrun Consumer Prices
Corporate America's effort to boost margins and sustain US stock gains faces a key hurdle: a widening gap between consumer and producer prices, compounded by tariff uncertainties. Prices paid to US producers surged in July by the most in three years, adding to signs that inflation may remain higher for longer. The report indicates companies are adjusting the price of goods and services to help offset costs associated with higher US tariffs, despite softening demand in the first half of the year. Separate data on Tuesday showed consumer prices accelerated in July, though the cost of tariff-exposed goods didn't rise as much as feared.
