Coach and Ralph Lauren are growing by understanding the purchasing power of middle-class consumers. According to Sina Finance, the market is sending LVMH a difficult signal: on forward earnings, investors now value the group at slightly less than Ralph Lauren, a lower-priced luxury brand.

The article said LVMH is valued 3% below the U.S. brand on forward earnings. It added that the valuation premium the group once enjoyed over the American brand has disappeared, after previously being much higher.

Ralph Lauren CEO Patrice Louvet said on a recent podcast that the brand deliberately serves multiple consumer tiers. He said people often equate luxury with a $4,000 handbag, calling that a lazy definition, and noted that consumers can buy a $12 pack of tennis socks as well as a $320,000 watch.

The strategy has worked. Ralph Lauren sales rose 13% in the three months through June, marking a seventh straight quarter of growth of 10% or more. Coach, the core handbag brand under Tapestry, reported a 14% sales increase last quarter.

The article said Coach and Ralph Lauren show that middle-class consumers still want luxury goods, but years of sharp price increases have created millions of abandoned luxury shoppers. Some have shifted to U.S. brands, while others have moved into the secondhand European luxury market. The RealReal reported quarterly sales growth of 17%, and Louis Vuitton was the platform's most searched luxury brand in 2025.

Bernstein estimated that more than half of Louis Vuitton's business comes from middle-class consumers. The article also said Gucci has started lowering prices on some products, while Burberry's new CEO has pushed a more reasonable pricing strategy that has begun to show results.