Luxury Brands Seek to Lure America’s AI Super-Rich

A model presents a creation by designer Veronique Nichanian as part of her Menswear Spring/Summer 2026 collection show for the fashion house Hermes during Men's Fashion Week in Paris, France, June 28, 2025. (Reuters)
A model presents a creation by designer Veronique Nichanian as part of her Menswear Spring/Summer 2026 collection show for the fashion house Hermes during Men's Fashion Week in Paris, France, June 28, 2025. (Reuters)
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Luxury Brands Seek to Lure America’s AI Super-Rich

A model presents a creation by designer Veronique Nichanian as part of her Menswear Spring/Summer 2026 collection show for the fashion house Hermes during Men's Fashion Week in Paris, France, June 28, 2025. (Reuters)
A model presents a creation by designer Veronique Nichanian as part of her Menswear Spring/Summer 2026 collection show for the fashion house Hermes during Men's Fashion Week in Paris, France, June 28, 2025. (Reuters)

European luxury brands have sharpened their focus on the United States, with a surge of store openings and fashion shows to lure a new crop of wealthy shoppers enriched by the AI and tech boom and offset weak consumer confidence in the rest of the world.

After two years of contraction, the luxury goods sector was showing signs of stabilization until the Iran war that began at the end of February, disrupting travel and denting luxury spending far beyond the Middle East.

And China, the biggest source of luxury sales growth for two decades, is still struggling to tackle deflation and the lingering impacts of a property crisis, so the sector needs rich Americans more than usual.

"The US high-end consumer has been much more resilient than we are seeing elsewhere, especially in Europe," said Marcus Morris-Eyton, portfolio manager at AllianceBernstein in London, adding that the continued AI rally and healthy wage growth have boosted this cohort of spenders.

Luxury ‌brands, such as ‌LVMH, Moncler and Gucci, have been quick to respond.

Dior and Gucci showing their cruise collections ‌in ⁠the US last month ⁠and Italian brand Zegna set to present its Summer 2027 collection on Friday in Los Angeles.

Even last year, North America for the first time took the top spot for new store openings, according to real estate firm Savills' global luxury retail report, which has tracked data since 2016.

The report found North America accounted for about 27% of global luxury store openings in 2025, compared with 26% of openings in Europe and 19% in China. Globally new luxury store openings fell to their lowest level since 2020.

US REPRESENTS SIGNIFICANT POTENTIAL

The US has fewer luxury stores relative to its numbers of super-rich consumers than China, according to Savills research.

"Many brands still view the US as unpenetrated ⁠relative to the scale of its wealth base," said Todd Siegel, Chicago-based president of US retail ‌at real estate firm Savills.

The investment in stores is focused not just ‌on major East and West Coast cities. It extends to second-tier states and cities where high-net-worth individuals have moved, attracted by lower tax rates than ‌California or New York, Siegel said.

Italian luxury outerwear group Moncler, for instance, has said most of its new stores will ‌be in the US this year.

It opened a store in the luxury ski resort of Aspen in January and plans to open its largest flagship store globally on New York’s Fifth Avenue in the second half of the year, as well as new locations in California’s Valley Fair, and in Dallas, Texas, among other cities.

French luxury group Hermes opened its first stores in Nashville, Tennessee, and Scottsdale, Arizona, last year. It plans ‌to open in the Plaza del Lago shopping center in Wilmette, north of Chicago this summer, and in Williamsburg, Brooklyn, in September.

US AND PART OF ASIA VERSUS EVERYWHERE ELSE

Consultancy Bain ⁠said the luxury sector reflected ⁠a "two-speed world" as the United States and parts of Asia grow, while Europe and the Middle East are impacted by weaker tourist spending in the ongoing Iran war.

Most luxury brands do not report US figures specifically, but their first-quarter reports show growth in the broader Americas region was much stronger than elsewhere.

Cartier owner Richemont's sales grew 18% in the Americas from January to March, the group's ninth consecutive quarter of double-digit sales growth in the region.

The strength of the US luxury consumer has also boosted American groups Ralph Lauren and Coach owner Tapestry whose sales have outpaced rivals.

"Our core customers are loyal and resilient," Ralph Lauren Chief Product & Merchandising Officer Halide Alagoz told Reuters. "What we see so far is that their behaviors are not changing. On the contrary, consumers during these turbulent times want to come to brands that they can trust."

Tapestry CEO Joanne Crevoiserat said there was potential to grow in North America. "We're building emotional connections and bringing new, younger consumers into the market in North America and beyond," she said.

Morgan Stanley analyst Edouard Aubin said upcoming US IPOs could drive spending on high-end watches and jewellery, but cautioned that US nationals account for about 20% to 22% of global luxury spend.

"It's nice, it's helpful, but you need China to get better as well for the sector to really recover," he said.



Hugo Boss Shares Jump after Frasers' $2.3 Billion Takeover Bid

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
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Hugo Boss Shares Jump after Frasers' $2.3 Billion Takeover Bid

FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Men's shoes are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo

Shares in Hugo Boss rose about 7% on Thursday after Britain’s Frasers Group launched a $2.3 billion takeover offer for the German fashion brand.

Frasers, already the largest shareholder of Hugo Boss with a stake of just over 26%, is offering €38 per share in cash for the remaining shares, a 4.3% premium to Wednesday’s close, Reuters reported.

Hugo Boss said late on Wednesday the approach was not coordinated ⁠with the company ⁠and that its board would review the offer, which values the stake not yet owned by Frasers at about €1.98 billion ($2.3 billion).

The deal would bring Hugo Boss into the retail empire controlled ⁠by British billionaire Mike Ashley, whose Frasers Group owns Sports Direct and House of Fraser and holds stakes in Asos, Debenhams and Currys.

J.P. Morgan said the bid likely sets a near-term floor for the shares but flagged limited scope for further upside, adding it did not expect a rival bidder to emerge.

Hugo Boss, ⁠whose ⁠shares are about half their level of three years ago, has been struggling with weaker sales and is pursuing a turnaround strategy focused on store revamps, a streamlined product range and expanding women's wear.

By 0713 GMT, Hugo Boss shares were up 6.2% at €38.7, above Frasers' offer price, taking their year-to-date gains to 7.2%. Frasers shares fell 2.5%.


Primark Names Lucy Slinger as Finance Chief Ahead of AB Foods Split


A Primark store is pictured in the Bullring shopping center in Birmingham, Britain, November 4, 2020. REUTERS/Andrew Boyers
A Primark store is pictured in the Bullring shopping center in Birmingham, Britain, November 4, 2020. REUTERS/Andrew Boyers
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Primark Names Lucy Slinger as Finance Chief Ahead of AB Foods Split


A Primark store is pictured in the Bullring shopping center in Birmingham, Britain, November 4, 2020. REUTERS/Andrew Boyers
A Primark store is pictured in the Bullring shopping center in Birmingham, Britain, November 4, 2020. REUTERS/Andrew Boyers

Fashion retailer Primark named Lucy Slinger as its chief financial officer on Thursday, strengthening its leadership team ahead of its split from Associated British Foods.

Slinger joins Primark from IKEA franchisee ⁠Ingka Group, where she ⁠has served as deputy CFO.

Prior to Ingka Group, she spent over two ⁠decades at Shell in a range of senior finance leadership roles.

Slinger's appointment follows that of Eoin Tonge as Primark chief executive and Filip Ekvall as chief commercial officer in March, Reuters reported.

⁠AB ⁠Foods said in April it would spin off Primark from its food businesses, telling investors that it will be better positioned to grow on its own.


NASA to Wear Prada as Luxury Group Pushes Into Space Industry

The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
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NASA to Wear Prada as Luxury Group Pushes Into Space Industry

The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa

Italian fashion house Prada unveiled on Sunday the inner-layer garment set to be worn by NASA astronauts heading into space, underscoring the brand's push to be the first major luxury player to make inroads in the space industry.

The body-hugging suit, created in collaboration with Houston-based space infrastructure developer Axiom Space, features ventilation tubes knitted into the garment.

"We have really a broad spectrum of capability and know-how," Lorenzo Bertelli, Prada's chief marketing officer, said at an event at Prada's Manhattan store, sitting beside a mannequin donning the new Liquid Cooling and Ventilation Garment.

Expertise for developing space exploration products "can come from lots of seemingly unrelated industries," Reuters quoted Jonathan Cirtain, CEO of Axiom Space, as saying.

The new product follows Prada's splashy foray into space fashion in 2024 with the ⁠unveiling of a ⁠spacesuit that is expected to be used for NASA's Artemis 3 Earth orbit, set to launch in 2027, and the anticipated Artemis 4 moon landing in 2028. Luxury brands have long drawn inspiration from space travel.

But Prada has gone "beyond inspiration into an actual partnership" as the space exploration and tourism industries develop, said Thomai Serdari, a luxury brand strategist and marketing professor at New York University's Stern ⁠School of Business. Serdari pointed to two factors motivating Prada's interest in the space industry: to gain access to affluent consumers who are contemplating space travel, and to align the brand with avant-garde thought.

Companies from Jeff Bezos' Blue Origin to Elon Musk's SpaceX have leaned into space tourism for the wealthy.

The resumption of space exploration and human travel to the moon is "bound to attract a lot of eyeballs," said Luca Solca, global head of luxury goods at Bernstein. Luxury brands need to stay relevant and visible, he said. Prada's push comes against a backdrop of a struggling luxury goods sector.

After two years of contraction, the ⁠industry was showing signs ⁠of stabilization until the Iran war began at the end of February, disrupting travel and denting luxury spending far beyond the Middle East.

WILL LUXURY PEERS FOLLOW? Other fashion and apparel companies have jumped on the space bandwagon. Under Armour has partnered with spaceflight company Virgin Galactic to create space apparel, while Columbia Sportswear has worked with space exploration company Intuitive Machines on space fabric technology.

But it remains unclear whether other luxury players might follow Prada's lead. "In luxury, it is important to be the first to do something, to be a trend-setter," Serdari said, noting that LVMH's Louis Vuitton, Hermès and Chanel are all interested in space travel but that they would likely find new ways to make inroads.

"You will never see the upper crust of the luxury sector copying each other," she added.