US fashion marketers optimistic despite low consumer sentiment

US fashion and beauty marketers remain confident about growth despite low consumer sentiment, according to new research from performance marketing agency Impression.

The study, which surveyed 500 marketing professionals across middle management to C-Level at companies generating under $1 million to over $1 billion in revenue, highlights the sector’s resilience amid economic uncertainty and a rapidly evolving retail environment.

The findings show that 87 percent of respondents expect revenue growth in 2026, while 73 percent anticipate an increase in marketing budgets. This optimism persists even as US consumer sentiment approaches historic lows, according to data from the University of Michigan.

Revenue and budgets remain a focus

Mikey Emery, Commercial Director, Impression: "Marketers are a notoriously optimistic group, and high revenue forecasts are to be expected. Advertising costs continue to rise, so larger budgets won't necessarily mean better campaign results. What matters now is how marketers use this added budget: whether they invest in the right tools and strategies to give them a competitive edge."

Despite concerns about "AI slop" and declining click-through rates, marketers are embracing artificial intelligence. Since the introduction of AI Overviews, 71 percent of respondents reported an increase in website traffic, with 26 percent noting a significant jump. Driving online engagement is crucial as 85 percent of US fashion and beauty sales occur digitally.

Human creativity remains central

The study also suggests AI adoption is not replacing human teams. Sixty-six percent of businesses plan to grow their internal marketing departments over the next year.

Mikey Emery: "AI opens up new opportunities for advertising, and marketers are obviously excited about this potential. But what's clear from this study is that high-quality, human-led creativity is going nowhere soon."

www.impressiondigital.com

Follow Marketing Report on LinkedIn