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Agenda-setting intelligence, analysis and advice for the global fashion community.

Why the Fashion Industry (Mostly) Hates a Weak Dollar

The greenback’s slide this year is reducing the purchasing power of American consumers, depressing tourism and complicating supply chains already rocked by tariffs. Brands say the overall impact can top 5 percent of sales.
Currency fluctuations are complicating operations for fashion brands.
Currency fluctuations are introducing more uncertainty for fashion brands. (Shutterstock)

Americans love to grumble about how a dollar just doesn’t go as far as it used to. Lately, fashion brands feel their pain.

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Further Reading

How Inflation Changed Fashion

US consumer prices rose at their slowest pace in two years in June, potentially bringing to a close a period that changed how many fashion brands value their goods.

Explainer: How Trump’s Tariffs Threaten Luxury Fashion

The Trump administration’s radical changes to US trade policy won’t push retail prices up enough to directly dampen sales, but the effects on the global economy and consumer sentiment could seriously dent an industry still struggling to bounce back from a sharp downturn in demand.

Is China’s Luxury Market Ready to Rebound?

The short answer is yes — but it won’t soon return to its pre-pandemic growth rates. After two years of turbulence, the market remains shaky, and brands will need to earn every sale.

About the author
Joan Kennedy
Joan Kennedy

Joan Kennedy is Correspondent at The Business of Fashion. She is based in New York and covers beauty and marketing.

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