Overview

• U.S. credit card spending on luxury goods fell 1.7 percent in May and dropped year over year in the first five months of 2025.
• Luxury jewelry spending has grown every month since September 2024 and jumped 10.1 percent year over year in May, with both customer counts and average spend rising.
• Handbag and ready-to-wear segments have struggled under price increases of 30 to 40 percent since the pandemic without notable product innovation.
• Overall luxury watch spending rose 14.7 percent in May but top-tier watch brands saw a 10 percent decline in customer engagement.
• The imminent end of the reciprocal tariff pause and higher oil prices tied to the Iran-Israel conflict are casting uncertainty over future high-end purchases.