HENRYs purchased $14,241 worth of luxury goods on average across 22 categories in the first quarter, up about $2,400 from the same period in 2009, according to Unity Marketing's data. The wealthiest consumers spent $56,534, about $16,000 more.
The highest-income shoppers are insulated from rising food and fuel prices by gains in their financial portfolios, said David Schick, an analyst at Stifel Nicolaus & Co. in Baltimore.
The Standard & Poor's 500 Index has climbed 96% since reaching an almost 13-year low on March 9, 2009, at the depths of the recession.
The S&P Retail Exchange-Traded Fund has risen by 49% since Dec. 31, 2009, while the S&P 500 ETF has increased 20% over the same time period.
Revenue for luxury retailers like Coach and Tiffany & Co. is growing because their primary customer base can still afford to splurge even as it costs more to buy groceries and fill gas tanks, Schick said.
'De-Linking'
"Very robust sales numbers for Coach and Tiffany's show that de-linking, where food and fuel inflation is just not as significant," he said.
Net sales for Coach increased 14% in the quarter ended April 2 from the same time last year, while Tiffany's worldwide net rose 12% in the period ended Jan. 31.
Handbag sales at different price points for New York-based Coach show "bifurcation" within its customer base, according to Daniela Nedialkova, an analyst with Atlantic Equities LLP in London. Coach's most expensive purses, priced at $400 or more, contributed 18% to net sales in the third quarter, up from 10% the prior year, she said.
At Nordstrom Inc., more expensive merchandise has outperformed the rest of the store, increasing the company's average price point, Erik Nordstrom, the Seattle-based department store's executive vice president, said in a May 12 conference call with analysts.
No Discounts