U.S. Apparel Retailers Push Higher Full-Price Tags as Tariffs Persist
Levi Strauss, Aritzia and others report resilient demand among wealthier shoppers after price increases, signaling a shift away from discounting
A handful of U.S. apparel retailers are increasingly testing higher full-price assortments to gauge how much wealthier customers will pay as tariffs and other cost pressures persist.
Levi Strauss & Co. and Aritzia Inc. have reported limited pushback after recent price increases, prompting both companies to dial up full-price selling rather than rely on promotions. Levi’s raised prices on some items in July and saw no slowdown in demand, Chief Financial Officer Harmit Singh said Wednesday at the Goldman Sachs Global Retailing Conference in New York. “We are making a full-court press in selling higher full-price sales than we have done in the past,” Singh said, adding that the Levi’s consumer largely earns $100,000 and over and has generally been resilient.
Aritzia’s finance chief relayed similar results, saying there has been minimal impact on U.S. orders after the accessible-luxury retailer raised some prices earlier this year. The company, whose brands are favored by celebrities including Beyoncé, Bella Hadid and Pamela Anderson, said it does not plan to chase promotions and discounts during the upcoming holiday season.
Retailers have pointed to persistent tariffs and related supply-chain and input-cost pressures as a factor in pricing decisions. Executives at Levi’s and Aritzia portrayed recent moves as deliberate tests of price elasticity among higher-income customers, shifting away from a heavy reliance on markdowns that characterized parts of the retail rebound after the pandemic.
Industry analysts say the experiments reflect a broader recalibration in apparel pricing strategies. After several years of elevated promotional activity, some brands are exploring whether stronger full-price performance can be sustained among consumers with higher disposable incomes, particularly as tariffs have squeezed margins on imported apparel.
Retail results so far have varied by brand and segment. Levi Strauss, a century-old denim maker, emphasized that the recent price shifts were targeted and that core demand held through the summer. Aritzia characterized its customer base as loyal and less price-sensitive, enabling it to forgo deeper discounting this holiday season.
Executives at the Goldman Sachs conference and in company statements cautioned that the moves are still tests rather than wholesale shifts for the industry. Retailers will be watching sales patterns in the coming months to determine whether full-price strategies can be broadened without eroding volume or brand loyalty.
For now, the early returns have encouraged some apparel companies to press ahead with higher-priced, full-price assortments even as tariffs and other costs persist, a development that could influence promotional behavior across the sector into the crucial holiday selling period.
