According to the latest CNBC/NRF Retail Monitor, released by the National Retail Federation (NRF), US retail sales at clothing and accessories stores increased 0.63% from May to June on a seasonally adjusted basis. Compared with June 2025, sales surged 13.65%, making apparel one of the best-performing retail categories during the month. Only digital products recorded stronger annual growth among the sectors tracked by the index.

Commenting on the latest figures, NRF President and CEO Matthew Shay said: “The summer shopping season got off to a strong start in June. Consumers took advantage of summer sales events, and many began their back-to-school shopping early.”

He added: “The capacity for retail spending has been supported by the sector’s focus on keeping prices accessible and by a stable labour market. Year-over-year improvements are especially notable, given the comparatively weak results seen in June 2025.”

The broader US retail sales picture also remained positive. Excluding automobile dealerships and fuel stations, total retail sales rose 0.33% from the previous month on a seasonally adjusted basis and increased 9.41% year over year.

In comparison, May recorded a stronger monthly gain of 0.42%, while annual growth stood at 7.19%.

Core retail sales, which exclude restaurants, motor vehicle dealers, and gas stations, also continued to strengthen. Sales advanced 0.36% between May and June and were 10.08% higher than the same month last year. The previous month had recorded a 0.39% monthly increase and 6.98% annual growth.

Annual sales gains were reported across all major retail segments. Sporting goods, electronics, and apparel stores posted the strongest combined year-over-year increase of 18.53%, highlighting sustained consumer spending across discretionary product categories.

On a month-to-month basis, nearly every retail category experienced growth. The only exceptions were electronics and appliance retailers and furniture and home furnishings stores, both of which recorded declines during June.

Performance during the first six months of 2026 also remained encouraging. Total unadjusted retail sales increased 6.81% compared with the same period a year earlier, while core retail sales rose 6.84%, underscoring steady consumer demand across much of the retail sector.

The latest results indicate that retailers have benefited from seasonal promotions, competitive pricing, and stable employment conditions, providing a solid foundation for consumer spending as the industry moves further into the second half of the year.

The Fast Retailing FY26 forecast was upgraded after the company posted strong financial results for the nine-month period ending May 31, 2026. Consolidated revenue climbed 17.1% year on year to ¥3.0651 trillion (approximately US$18.97 billion), while business profit surged 33.6% to ¥592.7 billion (US$3.67 billion). Net profit attributable to shareholders also increased 25.6%, reaching ¥426 billion.

UNIQLO Continues Global Expansion

UNIQLO remained the group’s primary growth driver, recording higher sales and profitability across every major region during the March-to-May quarter. The company attributed the strong performance to effective brand-building initiatives, successful product launches, and an expanding global retail network.

The international UNIQLO division generated ¥1.834 trillion in revenue during the first nine months, representing growth of 25.9%, while business profit jumped 45.4% to ¥345.3 billion.

Third-quarter performance was even stronger, with revenue increasing 33.8% to ¥592.6 billion and business profit rising 65.2% to ¥112.3 billion, supported by improved operating margins.

Demand remained healthy across several international markets. China continued to deliver higher revenue and double-digit profit growth, while South Korea, Southeast Asia, India, Australia, North America, and Europe all achieved double-digit increases in both sales and earnings. Seasonal collections, targeted marketing campaigns, and expansion of flagship and large-format stores contributed to the positive results.

During the quarter, the company strengthened its international presence by opening six additional stores in North America, including a flagship location in Chicago alongside major stores in New York and Boston. European expansion also continued with new outlets in Bristol and Utrecht, while Seoul’s Myeongdong district welcomed a new global flagship store.

Strong Results for UNIQLO Japan and GU

UNIQLO Japan also recorded solid growth during the reporting period. Revenue reached ¥867.6 billion, an increase of 8.3%, while business profit rose 15.1% to ¥172.9 billion.

Third-quarter sales increased 10% as same-store sales climbed 9.9%, driven by strong demand for bottoms, Easy Pants, and UV Protection Parkas. Quarterly business profit advanced 18.3% to ¥62.2 billion.

Value fashion retailer GU also improved its financial performance. Nine-month revenue rose 3.7% to ¥265.6 billion, while business profit increased 28% to ¥32.1 billion. During the third quarter, revenue expanded 7.5%, and business profit surged 36.7%, supported by successful trend-focused merchandise and greater operating efficiency.

Global Brands Face Ongoing Challenges

The company’s Global Brands division delivered mixed results. Although third-quarter revenue increased 2.5% and business profit rose 48.3%, revenue measured in local currencies declined by roughly 4%, mainly because of weaker trading conditions at Theory.

Across the first nine months, revenue for the segment fell 4.2% to ¥96.3 billion, while business profit declined 33.4% to ¥1.9 billion. Fast Retailing attributed the weaker performance to restructuring efforts at Theory and continued rationalisation of the Comptoir des Cotonniers and Princesse tam.tam retail networks.

Higher Expectations for FY26

Reflecting stronger-than-anticipated business performance, the Fast Retailing FY26 forecast has been revised upward. The company now expects full-year consolidated revenue of ¥3.97 trillion (approximately US$24.61 billion), representing annual growth of 16.7%.

Business profit is projected to reach ¥710 billion, while operating profit is forecast at ¥730 billion. Net profit attributable to shareholders is expected to total ¥500 billion.

Compared with the guidance issued in April, the revised outlook includes higher revenue, business profit, operating profit, and net profit projections. The company cited continued strong trading through June and updated foreign exchange assumptions as the primary reasons for improving its earnings forecast.

For the quarter ending 31 May 2026, the company reported net revenue of US$1.6 billion, representing an 8% increase on a reported basis and 6% organic growth compared with the same period last year. The performance has prompted management to revise its full-year expectations upward.

Reflecting this positive trend, Levi Strauss FY26 outlook now forecasts reported revenue growth of 7% to 7.5%, an improvement from the previous guidance of 5.5% to 6.5%. Organic revenue growth expectations have also been increased to 5.5%–6.0%.

The company additionally raised its projections for adjusted diluted earnings per share (EPS) to between US$1.46 and US$1.52, while expecting an adjusted EBIT margin of 12%, both exceeding earlier forecasts.

Growth Across Key Markets

Levi Strauss recorded revenue growth in most major regions during the quarter. The Americas remained the strongest contributor, with reported sales increasing 9%, while the United States market delivered 5% growth.

European revenue advanced 4% on a reported basis, although organic sales declined 1% because of shipment timing related to distribution centre operations during the previous year.

Asia continued to perform strongly, with reported revenue climbing 10% and organic sales increasing 12%, highlighting sustained consumer demand across the region.

Profitability Continues to Improve

The company reported net income from continuing operations of US$95 million, compared with US$80 million in the corresponding quarter of the previous year. Diluted earnings per share from continuing operations increased from US$0.20 to US$0.24.

Adjusted EBIT margin improved to 9.0%, compared with 8.3% a year earlier, while gross margin expanded slightly to 62.7%. The improvement was driven by lower product costs and strategic pricing initiatives, although tariff expenses and currency fluctuations continued to create headwinds.

Operating margin also edged higher, reaching 7.8%, compared with 7.5% in the prior-year period.

Selling, general and administrative (SG&A) expenses rose to US$843 million, mainly reflecting higher selling costs and the impact of foreign exchange movements.

Direct-to-Consumer Business Drives Momentum

Direct-to-consumer (DTC) operations remained the company’s fastest-growing business segment during the quarter. Reported DTC revenue increased 11%, while organic growth reached 8%.

Online sales performed particularly well, rising 19% on a reported basis and 17% organically. Comparable sales across DTC channels also improved by 6%, reinforcing the company’s ongoing digital and retail strategy.

Overall, DTC operations contributed 51% of total quarterly revenue, while wholesale revenue increased 5% on a reported basis and 3% organically.

Outlook Remains Positive

The updated Levi Strauss FY26 outlook assumes that US import tariffs will remain at 30% for goods sourced from China and 20% for imports from other countries. The company also expects broader economic conditions to remain relatively stable, without major increases in inflation, supply chain disruptions, tariff changes, or currency volatility.

Commenting on the results, President and CEO Michelle Gass said: “The Levi’s brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing. Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability. While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before.”

According to the July 2026 Executive Cotton Update from Cotton Incorporated, US apparel demand increased by 0.6% month-on-month in May after experiencing declines in March and April. Compared with the same month last year, apparel spending rose 3.5%, indicating that consumer interest in clothing remained stronger than overall retail spending.

In contrast, total consumer expenditure grew only 0.2% during May and recorded a 2.1% year-on-year increase. Clothing prices also continued to climb, rising 0.2% from April and 4.8% from a year earlier—the fastest annual increase since the post-pandemic period. This marks a notable shift for a sector where apparel prices have traditionally remained stable or declined over time.

The report also highlighted improving global trade conditions following a memorandum of understanding signed between the United States and Iran in mid-June, which helped restore smoother cargo movement through the Strait of Hormuz. The development contributed to lower energy costs, with Brent crude falling about 16% from early June levels to around US$70 per barrel. Average US gasoline prices also declined by roughly 16%, easing transportation expenses.

Despite lower fuel costs, inflation remained elevated at 4.2%, while wage growth stood at approximately 3.5%, continuing to pressure household budgets.

For apparel manufacturers and sourcing teams, US apparel demand remains an important indicator. The report noted that the average cost of cotton-dominant apparel reached US$3.68 per square metre equivalent in May, down 3.5% from a year earlier but still 6.8% above pre-pandemic 2019 levels.

According to reports, Next is exploring a formal offer for Harvey Nichols, although neither company has confirmed that negotiations are underway. Harvey Nichols declined to comment on the speculation, while Next has not publicly responded to requests for comment. Sources indicate that the proposal is still in its preliminary phase, with no certainty that a transaction will ultimately proceed.

Founded in 1831, Harvey Nichols has established itself as one of the UK’s best-known luxury department store operators, offering designer fashion, beauty products, premium food, wines and lifestyle goods through its flagship Knightsbridge store and regional locations. A successful acquisition would provide Next with a stronger presence in the high-end retail segment and further diversify its portfolio beyond its traditional fashion business.

The reported Next Harvey Nichols takeover follows the retailer’s acquisition of footwear brand Russell & Bromley earlier this year through an insolvency process. That purchase reinforced Next’s strategy of acquiring established retail brands with strong consumer recognition while expanding into higher-value market segments.

In recent years, Next has built a reputation for revitalising well-known British retail brands through acquisitions and strategic partnerships. Adding Harvey Nichols to its portfolio would represent one of its most prominent moves into luxury department store retailing, potentially strengthening its position in a market that has remained resilient despite broader challenges facing the UK retail sector.

Although industry observers continue to watch developments closely, any deal remains subject to further negotiations and regulatory processes. For now, the reported Next Harvey Nichols takeover signals the retailer’s continued appetite for growth as it seeks to expand its reach across both mainstream and luxury retail markets.

Although Frasers Group will exit its equity position in Sports Direct Malaysia, the deal includes a long-term commercial arrangement through which the company will continue receiving income as MAP Active drives the brand’s future expansion in the Malaysian market.

The Sports Direct Malaysia sale builds on an already established collaboration between the two companies, which spans several Southeast Asian markets, including Indonesia, the Philippines, Thailand, Vietnam and Cambodia. By expanding this partnership, Frasers Group aims to simplify regional operations, improve efficiencies and reinforce its long-term growth strategy across Southeast Asia.

With its extensive retail infrastructure, in-depth local market knowledge and strong portfolio of internationally recognised brands, MAP Active is expected to accelerate Sports Direct’s regional expansion. Together, the companies remain focused on their long-term objective of opening more than 350 stores across Southeast Asia while bringing leading sport and lifestyle brands to a consumer base exceeding 600 million people.

Michael Murray, CEO of Frasers Group, said “MAP Active is a valued strategic partner, and this transaction further deepens our relationship as we accelerate Sports Direct’s growth across Southeast Asia. Together, we are creating a strong platform to deliver our ambitious growth plans. I look forward to continuing to work with the MAP Active team to unlock further value.”

V.P. Sharma, Group CEO of PT Mitra Adiperkasa Tbk, said “We are delighted to be strengthening our relationships with Frasers Group through this transaction. Leveraging on our local expertise and regional retail network, we look forward to offering more of Sports Direct’s world-class offerings to our customers across the region – and unlocking new opportunities that create long-term value for both companies.”

The transaction marks another significant step in the companies’ shared ambition to expand Sports Direct’s footprint throughout Southeast Asia. By combining MAP Active’s regional retail capabilities with Frasers Group’s internationally recognised sporting goods brand, the partnership is positioned to drive sustained growth, enhance customer reach and create long-term value across one of the world’s fastest-growing consumer markets.

The Mechanics of Financial Dominance

The substantial market valuation of the world’s premier luxury and athletic firms is rooted in their ability to sell consumer desire rather than basic utility. While standard retail brands often struggle with thin profit margins and shifting seasonal global industry trends, giants such as LVMH, Christian Dior, Hermès, Richemont, and Nike have constructed formidable financial positions. These organizations benefit from intense consumer loyalty, which empowers them to adjust pricing upward without experiencing a loss in their customer base. This unique market standing provides a significant advantage over smaller competitors who must frequently discount inventory to manage unsold stock.

Strategic Scarcity and Heritage in European Fashion

For the most prestigious European fashion houses, sustained financial dominance is achieved through the management of heritage and intentional scarcity. Hermès, for instance, keeps its signature leather goods difficult to obtain, a strategy that insulates the brand from broader economic fluctuations and maintains high profit margins. Furthermore, multi-brand conglomerates like LVMH and Richemont utilize their immense scale to dominate prime retail locations in major global cities, ensuring their Luxury Brand Market Cap remains robust through aggressive advertising and brand visibility.

Investment Value of Luxury Goods

Whether it is a Cartier diamond piece or a Louis Vuitton bag, these items are frequently viewed by consumers as long-term investments rather than disposable purchases. This perception ensures a consistent revenue stream that appeals to institutional investors. By positioning products as timeless assets, these brands maintain a market valuation that far exceeds that of traditional retail entities.

The Athletic Sector and Direct-to-Consumer Growth

Nike follows a distinct path to achieve its financial dominance, relying on massive scale and cultural integration. By allocating billions toward athlete endorsements and worldwide marketing, the company has successfully transitioned everyday apparel into symbols of status. Additionally, by increasing direct-to-consumer sales through digital platforms and flagship locations, they bypass traditional distribution networks and retain a higher portion of their earnings. This operational efficiency helps stabilize the Luxury Brand Market Cap even during volatile periods in the apparel industry.

The leading five brands in this sector have established such powerful identities and streamlined operations that they exist in a tier of their own. Their ability to navigate global industry trends and maintain consumer loyalty allows them to withstand the cyclical downturns that often impact standard retail businesses.

Addressing Gaps in Online Market Oversight

According to reports from a domestic news agency, authorities determined that previous digital economy regulations had not kept pace with the rise of intermediary platforms, platform-based business models, and cross-border trade. This regulatory gap contributed to increasingly complex challenges, including the proliferation of counterfeit goods, commercial fraud, and intellectual property violations. Consequently, the government has introduced the Vietnam E-commerce Law to promote innovation while simultaneously strengthening online market oversight.

The updated statutes clearly define the legal responsibilities of all market participants. Intermediary platforms, in particular, now face more rigorous requirements regarding information disclosure and identity verification. These measures have been strengthened to curb fraud and promote fair competition across the industry.

Strengthening E-commerce Compliance and Consumer Protection

Under the updated Vietnam E-commerce Law, platforms are now mandated to verify the identities of sellers and provide transparent data regarding products and transaction conditions. To ensure strict e-commerce compliance, these entities must proactively detect potential violations and maintain functional mechanisms for handling complaints. The law also seeks to modernize the sector by encouraging green e-commerce initiatives, such as environmentally friendly packaging and more efficient logistics systems.

Further reinforcements to consumer protection include clearer protocols for personal data security, refunds, and compensation. By establishing these high standards, the law aims to support the growth of small and medium enterprises, household businesses, and start-ups within a more secure digital economy. This shift toward robust online market oversight ensures that innovation is balanced with the protection of consumer rights and the maintenance of fair competition.

What the Research Tested and Found

The researchers conducted six online experiments examining how cost per wear labels affect purchase decisions. Participants viewed a lower-priced, lower-quality item (such as a sweater) next to a higher-priced, higher-quality alternative. When cost per wear information was displayed, participants were more likely to select the more expensive, higher-quality option despite the higher upfront cost. The effect was strongest when the two items’ cost per wear could be compared directly, and when the purchase involved everyday apparel rather than occasion wear.

Trust proved important. Cost per wear data certified by an independent third party was more persuasive than a general durability claim made by a brand. Reference points—such as a market average cost per wear for a given product category—made these comparisons more effective.

“Cost per wear reframes sustainability as smart spending,” Eckmann said in a press release. “Cheap fast fashion suddenly appears more expensive due to its higher cost per wear and quality pieces are viewed as better financial investments – not just greener choices.”

Why Cost Per Wear Matters for Sustainable Fashion

Clothing wears out, making it reasonable to assess value on a unit basis. Yet most shoppers do not know how long a garment will last and, without a prompt online or in-store, often overlook longevity during purchase decisions. The research highlights how simple, comparable cost per wear labels can keep durability in focus, steering attention toward durable clothing.

The industry’s environmental footprint provides added context. The Geneva Environment Network reports that fashion is the second-largest consumer of water and accounts for up to eight percent of global carbon emissions, while producing millions of tons of textile waste. “Using cost per wear in shops or online retail spaces could reduce the environmental impact of fashion,” Eckmann wrote in an article for The Conversation. “And of course the longer that garment remains in use, the less often it needs to be replaced.” These points intersect with sustainable fashion goals and align with evolving consumer behavior.

How Cost Per Wear Labels Could Work

The approach borrows from the grocery aisle, where unit pricing enables quick comparisons. Standardized fabric-durability tests already exist, measuring how many abrasion cycles a textile withstands before showing wear. Retailers could use these tests to estimate longevity and generate cost per wear labels displayed next to the price, reinforcing clarity in retail marketing.

“Cost per wear could be used much like unit pricing in supermarkets, and could be a low cost, high impact tool for retailers and policymakers to reduce textile waste and the environmental and social impacts of fast fashion,” Eckmann added in a press release. Framing information this way keeps value and durability visible, nudging choices toward durable clothing while reflecting real-world consumer behavior.

Limits, Adoption, and Next Steps

Widespread change is not guaranteed. Without regulation, brands and retailers would need to opt in to display cost per wear labels, and higher-quality players may have more incentive to adopt them than fast fashion labels. Affordability remains a practical barrier: even when cost per wear makes premium items look better value over time, some shoppers still cannot cover the higher initial price.

The experiments measured stated preferences and intentions online. Future research could test cost per wear labels in physical retail settings to observe real consumer behavior. Additional work may explore how shoppers consider trade-offs between durability and broader sustainability concerns. The researchers hope the findings encourage real-world trials and greater interest in cost per wear labels among consumers, which could, in turn, influence retail marketing practices.

Overall, the study indicates that clear, comparable cost per wear labels can make long-term value easier to understand, support sustainable fashion decision-making, and guide consumer behavior toward items designed to last.

The report suggests that the next chapter of expansion will be concentrated, with China and the United States contributing the largest share of momentum. The US, now estimated to be a roughly $130 billion market and the world’s biggest, is projected to grow by up to 5% per year through 2030. China’s high-end market, valued around $60 billion, is expected to regain pace and outgrow other regions, potentially expanding by as much as 6% annually.

Yet the report argues that growth will be harder to earn than it was during the post-pandemic surge. As the spending frenzy faded, luxury customers reassessed priorities and became more selective about where they spend. Experiences particularly travel are increasingly taking precedence over product purchases, while inflation has reduced appetite for discretionary fashion buys, including handbags.

The study also points to a credibility issue created during the boom years: widespread price hikes at major houses, often not matched by clear product innovation, left many shoppers feeling that value had deteriorated. In response to volatile trading, brands shifted focus toward ultra-wealthy clients who are less exposed to economic pressure. But the report says this pivot came at a cost: many brands failed to keep aspirational and mid-tier customers engaged, giving them fewer reasons to return to stores despite these buyers forming a crucial base for volume and brand heat.

In both China and the US, emotional connection has become the most important driver of luxury purchasing decisions. As shoppers become choosier, they gravitate to brands that feel personally relevant and aligned with their tastes and values, while heritage alone is losing influence.

The dynamics differ by market. Chinese consumers often use luxury as a form of outward expression, while US shoppers tilt more toward self-reward and shared values. In the US, 68% of luxury customers say challenger brands reflect who they are better than legacy houses. In China, 69% say legacy brands global and domestic still best represent their identity.

The report also notes growing scepticism toward artificial scarcity. In China, bespoke service has become the top marker of exclusivity; in the US, early access and loyalty benefits are more persuasive than waitlists.

Retail execution remains pivotal. Physical stores strongly influence Chinese shoppers across segments, particularly entry-level customers. In the US, by contrast, poor in-store experiences pushy selling and long queues are cited as major deterrents.

Finally, the global luxury industry is seeing rising use of AI and resale. More US shoppers use AI for inspiration than Chinese shoppers, while China’s entry-level consumers are highly engaged with AI across discovery and decision-making. Resale is also gaining importance, especially among high-spending US clients drawn as much by “the thrill of the hunt” as by savings.