Even rich people may have to rein in spending as the global economy falters.

Gary Friedman, CEO of luxury furniture retailer Right side (Right side)said in its earnings report last week that “we saw a decline in demand in the first quarter, which coincided with Russia’s invasion of Ukraine in late February and subsequent market volatility.”

“I don’t think anyone really understands how high prices will be everywhere, in restaurants, in cars and everything else,” Friedman said, adding that this increase will hurt all consumers and that companies like his, will find themselves in a “complex space”.

RH shares owned by Warren Buffett Berkshire Hathaway (BRKB) owns the stake, plunging into cautious comments and a weaker outlook.

Other companies that cater to more affluent consumers are also starting to warn that worrying headlines could hurt demand.

“The market is experiencing unprecedented volatility due to the increased impact of a number of macroeconomic and geopolitical challenges. These include the war in Ukraine, as well as inflationary pressures that are affecting both our own business and overall consumer spending,” said Stefan Larsson, head CEO PVC (PVC)which owns the Tommy Hilfiger and Calvin Klein brands and licenses the Michael Kors and Kenneth Cole New York brands.

Larsson added that the company “will continue to grapple with the pandemic’s ongoing headwinds, in particular supply chain and logistics delays, especially in North America, in addition to recent virus outbreaks in Asia.”

But some Wall Street analysts remain optimistic that luxury companies will continue to do well.

“Luxury brands should benefit as they are likely to retain pricing power to maintain high margins, and they could see growth if international travel returns to pre-pandemic levels,” said Zachary Warring, an analyst at CFRA Research.

Warring specifically mentioned an expensive parka manufacturer Canadian goose (GOOS) and sportswear giant Lululemon as two companies that could do well even if inflation worries persist. Lululemon (LULU) shares rose last week after the company reported strong earnings.

Fears of a severe slowdown in US growth may also be exaggerated.

“We don’t believe the gloomy scenario for luxury goods yet,” Erwan Ramburg, head of global consumer and retail research at HSBC, said in a report last week. “We are surprised to hear some talk of a sharp decline in U.S. sales scenarios, given continued evidence of good appetite for luxury brands.”

Rambur said that LVMX (LVMHF), the luxury goods giant that bought Tiffany early last year and also owns Louis Vuitton and Dior, should impress investors by reporting earnings later this month. Rambour said that sales in most countries of the world should be stable, with the notable exception of China.

“The only market for which we expect the growth slowdown to be slightly noticeable is mainland China,” Rambour added, noting that Covid-related lockdowns could hurt luxury demand there.

But Ramburg also did not rule out that the global market and the economic downturn will eventually affect luxury sales. In the report, he said that a recession, a sharper fall in share prices and a protracted conflict in Ukraine are key risks facing high-end consumer companies.

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