Inside Finance | May 2026
May 2, 2026
Brands are continuing to show margin pressure as costs increase.
MARKETS
Solid consumer spending and a resilient labor will continue to prop up the economy in the coming year, economists at Goldman Sachs said in a year-ahead forecast.
However many people from industry are less confident.
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Markets
Brands are continuing to show margin pressure as costs increase.
Softening confidence and higher costs are driving more cautious, value-focused behavior – forcing brands to plan for flatter, less predictable demand.
U.S. demand remains relatively resilient, is facing headwinds, while EU growth has softened
Disciplined inventory control, a capital-light platform and margin-first retailing are helping Next outperform rivals in a difficult apparel market.
Brands wrapped up 2025 with stronger-than-expected earnings. However there are serious concerns heading into 2026.
Higher oil and energy costs are expected to squeeze discretionary spending in key markets, putting apparel and other non-essential retail under pressure in Q2.
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