Wealthy buyers shrink prices prices for birkestocks and bugaboo pricing for now

Wealthy buyers in the US. They seem, at least so far, willing to absorb price increases for aspirational products from modern Birkestock sandals to Bugaboo strollers, despite the impact of commercial tariffs and the adjustment of the belt in other places.

The brand of German sandals and obstructions has enjoyed a strong demand from consumers with little rejection of American retailers from hiking prices in early July, said its executive director on Thursday. As brands increase prices and reduce costs to mitigate the impact of the highest rates in the US.

Birkestock, Bugaboo, Coach, Ralph Lauren and other brands at the premium end of the market suggest that, so far, rich consumers are ignoring price increases.

“We did not see setbacks or cancellations after July 1 price increases implemented in response to tariffs,” said Birkestock CEO, Oliver Reichert, analysts on a call, and adding the brand's demand has been “tremendously strong.”

Bank of America, the largest consumer facing the United States bank, said this week that the average and high income winners spent more on their credit cards in July than the same month last year. In contrast, the expense between the lowest income level remained stable, the bank found.

In general, consumer spending in the United States can stay strong, said Bank of America, as long as people with higher revenues keep spending. Low income income represents only 15% of all expenses of US consumers., According to Bank of America. However, Procter & Gamble, a tide detergent manufacturer, reported signs of expense cuts among higher income consumers, indicating that buyers can be more selective with their purchases.

Bugaboo, a caro-based baby team manufacturer in the Netherlands, also raised prices in their strollers, high chairs and pen at $ 50- $ 300 in May due to US rates. The retailers were open and accepted.

“In general, we did not see any setback. They are like us. They understand that it is a fluid situation,” said North America's commercial director Jeanelle Teves. Bugaboo manufactures in China and sells strollers for more than $ 1,000 in Target, Nordstrom, Bloomingdales and independent moms and pop stores.

Trainers' bags also remain in a strong demand despite a more gloomy economic perspective: the brand attracted more than 4.6 million new clients in North America this year, many of which are generation Z and millennials, said the CEO of Tapiz Joanne Kuvoiserat on Thursday. The coach, whose popular stunted shoulder bags are sold for $ 350, will maintain their margin of operational benefit despite the tariff pressure, Kuvoiserat said.

Meanwhile, Ralph Lauren increased their annual revenue prognosis when buyers collected items such as their pole sweaters of $ 398. But the behavior of consumers in the coming months is still difficult to predict, CEO Patrice Louvet stood out at a telephone conference with analysts. “The greatest unknown here today is the price sensitivity and how the consumer reacts to the broader prices environment. So that is what we are seeing very closely as we advance in the second half.”