Core Insights - Apparel retailers, including Levi Strauss, are increasing full-priced product offerings, testing affluent consumers' willingness to pay despite tariffs [1][2] - Wealthier consumers, particularly those earning over $100,000, are showing resilience in spending, contributing significantly to overall consumer expenditure [2][3] - Companies like Ralph Lauren and Under Armour are shifting towards a full-price strategy, indicating a focus on higher-margin sales [4][5] Company Strategies - Levi Strauss has raised prices on select products without experiencing a decline in demand, indicating strong consumer interest [1] - Ralph Lauren is targeting a more elevated consumer base, which has proven beneficial for the company [4] - Under Armour is exploring price increases for loyal customers, successfully testing full-price items [5] Market Dynamics - Lower-income households are seeking bargains due to the impact of tariffs, while affluent consumers remain largely unaffected by economic fluctuations [3] - The richest 10% of Americans account for half of all consumer spending, highlighting the importance of targeting this demographic [3] - Retailers are leveraging improved consumer-tracking technology to implement targeted promotions, enhancing profit margins [5][6] Tariff Impact - Many companies have absorbed tariff costs and are expected to minimize discounts during the holiday season compared to previous years [7]