Luxury Brands to See 7 Percent Revenue Growth in 2027
Global luxury brands are forecast to grow by 7 percent as American consumer demand increases following years of high pricing.
Updated on Oct. 25, 2026 in Fashion
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Goldman Sachs projects a 7 percent revenue growth for global luxury brands in 2027. This growth outlook comes as the United States market sees a rise in demand, reversing a trend of low performance relative to wealth levels.
Why it matters
The luxury sector previously struggled due to aggressive pricing and limited innovation, which stifled store traffic. A shift in American consumption habits is now helping the industry recover from challenges caused by China's property market slowdown.
Prices for traditional high-end luxury brands surged by 60 percent between mid-2019 and mid-2026. The 2027 revenue forecast follows significant industry turnover, including the appointment of new CEOs and creative directors at multiple firms.
The players
Goldman Sachs
Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides a wide range of financial services.
The details
Luxury companies have responded to diminished consumer interest by hiring new creative directors tasked with showcasing refreshed collections. These strategic shifts follow a period where aggressive price hikes limited growth, alongside new challenges like US tariffs implemented in 2025.
Timeline
Prices for luxury brands rose by 60 percent between mid-2019 and mid-2026.
The United States implemented new tariffs on goods in 2025.
Global luxury brands are projected to achieve 7 percent revenue growth in 2027.
Culture Shift
The projected industry recovery follows significant turbulence tied to China's property market slowdown. This marks a departure from recent years where aggressive price hikes and limited innovation caused a decline in brand desirability among global consumers.
Shoppers in the United States may see a shift in product availability and marketing focus as brands pivot to capture renewed local demand. Consumers should watch for new collection launches as brands attempt to move past the aggressive pricing strategies of previous years.
The takeaway
The luxury market is pivoting toward innovation after a period where rapid price increases outpaced consumer interest. Consumers should expect brands to prioritize new creative direction as they attempt to regain market share in a more demanding environment.
Further reading
For more information on the current state of the industry, see our coverage on Fashion.
Live Poll
Do you plan to reduce your spending on luxury goods due to recent price increases?
