The luxury retail sector may be battling with inflation risks, but one analyst says consumer savings and a younger clientele should contribute to its reliance.

In an interview with BNN Bloomberg’s Amber Kanwar on Tuesday, Oliver Chen, senior research analyst at Cowen, said some luxury retailers are still achieving price gains despite inflation weighing on consumers. He pointed to strong consumer savings and a younger demographic showing interest in luxury name brands, as two reasons to stay invested in this space.

“Overall the consumer is pretty mixed, but on the positive side there’s lots of savings on the sidelines -- US$900B, and unemployment is low,” he said.

Chen recommended LVMH Moët Hennessy Louis Vuitton (MC), Costco Wholesale Corp. (COST) and Canada Goose Holdings Inc. (GOOS) as his top three picks in the luxury retail sector.

He, his family members, his firm and his investment banking clients do not own shares of the stocks mentioned above. 

Check out the full video at the top of the article to learn more.