Demand for luxury goods is rising in the U.S. and cryptocurrency wealth is believed to be behind a chunk of it, according to an analyst at Jefferies.
After a recent trip to New York and Florida, Jefferies analyst Flavio Cereda says the U.S. consumer “continues to surprise,” scooping up a range of high-priced items such as handbags, jewelry and designer clothes.
U.S. buyers of luxury items today are younger and more affluent than in the past, Cereda wrote, according to a report from Bloomberg.
Cereda estimates that local “super spenders” account for $20 billion of the total spend, the report states, which is more than double that from Europe but well below China.
The analyst says there’s a big impact from cryptocurrency wealth that could benefit luxury goods makers.
One company poised to profit is Louis Vuitton owner LVMH , which Cereda reportedly described as a “structural post-pandemic winner,” given its greater exposure to North America versus China.
Meantime, Kering SA , the French multi-national company behind high-end brands like Gucci, Alexander McQueen and Yves Saint Laurent is another luxury player that stands to benefit, according to the analyst.