Rob Armstrong and Katie Martin unpacked insights from the FT Business of Luxury Summit in Puglia, Italy, noting that ultra‑high‑net‑worth consumers treat luxury goods as both indulgence and a hedge against volatility. Their conversation traced how the sector’s resilience has deepened amid geopolitical tension, positioning premium brands as quasi‑safe assets for wealth preservation and underscored the sector’s growing appeal to sovereign wealth funds.

Armstrong argued that price elasticity at the top end is muted; even as global rates climb, demand for limited‑edition watches and bespoke leather persists. He cited recent private‑sale data showing a modest uptick in secondary‑market prices, suggesting investors are willing to pay premiums for provenance. Martin added that brands leveraging heritage narratives can command higher margins still in broader economic headwinds.

The dialogue also turned to macro pressures, with both hosts warning that a prolonged rates crisis could compress financing for boutique manufacturers. Yet they concluded that the luxury sector’s dual role—as status symbol and store of value—offers a buffer against recessionary shocks. Investors tracking brand equity and inventory turnover will find clearer signals in quarterly earnings releases as investors seek real‑asset exposure.