The Big Picture
With the government shutdown finally behind us, economists are sorting through the fog of delayed data and the picture is mixed.

Unemployment ticked up from 4.3% to 4.4% in September, and inflation rose 3% last month, the highest jump since January.

Some economists are now calling this a “K-shaped economy,” where different sectors and income groups are headed in very different directions.

October Sales: Another Standout Month
Blacks’ clients continued their winning streak, posting a 9% overall gain in October and our fourth straight month of strong momentum dating back to July, when early fall product sparked a surge in demand.

Menswear was the star, soaring 13%, fueled by a 19% spike in Sportswear. Sweaters, knits, soft coats, and casual pants delivered impressive double-digit gains.

Women’s wear also had a strong month, up 5% overall, with dresses climbing 3% as customers invested in new holiday and event looks.

One to Watch: Sell-Through
The momentum should carry us through Christmas, but the real challenge starts after the holiday rush since traditional markdown strategies are losing their punch.

At the same time, luxury price inflation is reshaping the market. Even at 50% off, many items are still priced out of reach for value-based customers.

A simple example:
A $4,000 suit at half off is still $2,000—well above the sweet spot for shoppers expecting something in the $1,200–$1,800 range.

Our Advice

Start your first markdown deeper, in the 30%–40% range. Then get aggressive with programming events, promotions, and constant storytelling.

The goal: move through fall/winter merchandise now, not in January, when customer demand drops sharply.

Blacks’ Bottom Line
The holiday outlook remains strong. But don’t let the momentum lull you. Execute proactive sell-through strategies now to protect your margins and set yourself up for a successful New Year.