Founder at Telsey Advisory Group Dana Telsey Talks Consumer Spending

Chanel

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Dana Telsey · Telsey Advisory GroupBullish

  Chanel's recovery is remarkable; the new designer's impact has spread from clothing into makeup, which is selling out.

  Chanel has staged a striking recovery over the past year. Its creative change under the new designer [Blazey] affected the clothing first and then the rest of the company, including makeup, where the Chanel Crush lipstick is sold out everywhere. As a result Chanel is back in vogue, which Dana contrasts with Gucci lacking star power.

  “Have you ever seen a recovery of a house like Chanel in the last year? It's been amazing... [Blazey's] impact on the clothing impacted every other part of the company. I mean, even their makeup... So Chanel is back in vogue”at 1:02

Target

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Dana Telsey · Telsey Advisory GroupBullish

  Target is up over 50% this year on assortment newness and collaborations, a strong big-box performer.

  Target's stock is up over 50% this year. Dana attributes this to newness in its assortment and new brand collaborations, including Hollister and Home and Warby Parker shop-in-shops, which reflect the search for value among shoppers.

  “Look at Target this year. Target's up over 50%, the newness in the assortment, the new collaborations.”at 4:26

Walmart

Across the shows: 5 speakers in other episodes, 3 bullish and 2 bearish calls, past 30 days

• Dana Telsey · Telsey Advisory GroupBullish

  Walmart's fastest growth is coming from its highest-income households, a sign of strong momentum.

  Walmart's growth is currently strongest in households with the highest incomes relative to its customer base, which Dana cites alongside a broader search for value. This indicates the retailer is attracting a wider mix of shoppers.

  “There's that search for value. You look at Walmart, the fastest part of Walmart's growth is coming from household incomes that are at their highest level for Walmart.”at 4:38

Nike

Across the shows: 8 speakers in other episodes, 4 bullish and 4 bearish calls, past 30 days

• Dana Telsey · Telsey Advisory GroupBearish

  Athletic footwear is weak and promotional; Nike needs to deliver newness to revive the category.

  The athletic footwear category has been tough and promotional. Dana says the category needs newness from Nike to recover, and suggests the industry has moved on because post-COVID consumers are dressing up for events, so Nike's current offer is not enough.

  “Look at active footwear, the athletic footwear. That category has been very tough. It's been promotional, and you need the newness from Nike to resuscitate the category.”at 5:25

LVMH Moët Hennessy Louis Vuitton

Across the shows: 4 speakers in other episodes, 1 bullish and 6 bearish calls, past 30 days

• Dana Telsey · Telsey Advisory GroupBearish

  LVMH's fashion and leather goods, 45% of sales, fell short as Chinese demand dropped mid-teens.

  LVMH's fashion and leather goods division, about 45% of the business, came in weaker than expected. Dana attributes this to China, where Chinese consumer demand fell by the mid-teens. Other parts of the group, Sephora and jewelry and watches, were growing well, which highlights how important the Chinese consumer is to the leather goods business.

  “Basically, fashion and leather goods, which is 45% of the business, was weaker than expected. Why? China. Chinese consumer demand was weaker. It was down mid teens.”at 7:36

US consumer

• Dana Telsey · Telsey Advisory Group

  Upper-income consumers have discretionary money, while lower and middle earners choose carefully, favouring experiences.

  Despite high inflation, spending continues because discretionary money exists for upper-income households. Lower and middle-income consumers are more selective, so they choose the experiences and viral items they want to spend on rather than broad purchases.

  “There's discretionary money out there for upper income. But even when you're looking at lower and middle income consumers, they're choosing what to spend on. So they'll choose the experience.”at 3:24

• Dana Telsey · Telsey Advisory Group

  Holiday season should be okay, helped by advertising and activation that started early with Prime Day.

  Dana expects a decent holiday season, though she is not strongly bullish. Her reason is that advertising and activation are moving spending forward, and the season has already started with Amazon Prime Day, which retailers such as Target followed with their own events.

  “I think the holiday season's gonna be okay. And you know why? I think the advertising and the activation... is moving that holiday season. It's already gotten started because Amazon Prime Day kicks it off”at 6:31

GLP-1s & obesity drugs

• Dana Telsey · Telsey Advisory Group

  GLP-1 weight-loss drugs are driving new apparel wardrobe purchases, and that effect is still continuing.

  Dana identifies GLP-1 drugs as a changing force in consumer buying patterns. They are causing wardrobe changes and new apparel purchases as users' bodies change, and she says the effect is not finished because its impact extends over time.

  “GLP ones are causing new apparel wardrobe changes, new apparel wardrobe purchases, and they're not done because the impact that it has basically extends.”at 3:45

Consumer & retail

• Dana Telsey · Telsey Advisory Group

  Consumers are dressing up again, with suits, dresses and tailored bottoms selling well for work and events.

  Dana sees a return to dressier apparel. People want to look good and take pride in their appearance, and more meetings, events and conferences are driving this. Suits without ties, dresses, bottoms and denim worn to work and weekend events are all selling well.

  “Not formal, but they wanna look good again. They take pride in their appearance. And there's more meetings, there's more events, there's more conferences that people are going to... Dresses is huge.”at 6:11