PALM BEACH's WORTH AVENUE

ECONOMIC DOWNTURN leaves LUXURY BRANDS in jeopardy

By MEGAN V. WINSLOW
Daily News Staff Writer
Sunday, February 15, 2009

WEST PALM BEACH — Stroll down Worth Avenue any given afternoon, and the sheer volume of designer handbags draped from shoppers' arms creates an alphabet soup of initialed logos demanding attention.

The current economy, however, could mean a decline in the conspicuous display of such status symbols, Conde Nast Portfolio's European Editor, Dana Thomas, told the Luxury Marketing Council of the Palm Beaches on Tuesday.

"Who wants to be walking around town, showing off wealth when nobody else has it?" Thomas said. "You just don't do it. There's a toning-down across the board."

Thomas delved into her nearly 30-year history of covering the fashion industry to share observations and predictions about the health of luxury brands with about 40 council members gathered at the Phillips Point Club by The Breakers.

Luxury's diagnosis isn't good.

Consumers are not buying; stock prices are dismal, and many companies are scaling back advertising and the launch of new stores to compensate, Thomas said.