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.



H&M Reports Smaller-than-expected Q2 Operating Profit

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
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H&M Reports Smaller-than-expected Q2 Operating Profit

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko

Swedish fashion retailer H&M reported on Thursday a smaller-than-expected March-May profit as it was unable to fully meet demand after reducing the amount of clothing it keeps in stock, and predicted unchanged June sales.

Operating profit in H&M's fiscal second quarter was unchanged year-on-year at 5.91 billion crowns ($606.5 million), having risen three quarters in a row, against a mean forecast in an LSEG poll of analysts of 6.38 billion.

Sales measured in local currencies were roughly ⁠flat in the quarter, ⁠and H&M predicted flat local-currency sales also in June, year-on-year. Reuters quoted CEO Daniel Erver as saying in a statement that quarterly sales were somewhat lower than planned.

"The profitability improvement and increased inventory productivity are in line with our long-term work to lay the foundations for sustainable and ⁠profitable growth. The tighter inventory management has, however, in some cases affected our ability to fully meet demand," he said.

Excluding a one-off restructuring cost of 679 million crowns, related to organizational changes, operating profit rose 11%. The quarter was closely watched for how H&M weathered the Iran war's impact on consumer confidence and costs.

Profit margins held up, with the gross margin widening to 56.6% from 55.4% a year earlier against an expected ⁠56.5%.

H&M ⁠said it expected markdowns in the third quarter to be on a similar level to a year ago.
Erver is trying to attract more shoppers with trendier styles and overhauled marketing.

On May 7, H&M launched a collection in collaboration with designer Stella McCartney.

While H&M's profit margins have been improving, sales have been more sluggish as cut-price online retailers like Shein compete for price-sensitive customers while Inditex's Zara dominates the upmarket end of fast fashion.


Valentino 2025 Sales, Core Profit Slide as Debt Edges Higher

A model presents a creation by Italian fashion house Valentino during the show "Interferenze" Fall/Winter 2026-2027 collection at Palazzo Barberini in Rome on March 12, 2026. (Photo by Alberto PIZZOLI / AFP)
A model presents a creation by Italian fashion house Valentino during the show "Interferenze" Fall/Winter 2026-2027 collection at Palazzo Barberini in Rome on March 12, 2026. (Photo by Alberto PIZZOLI / AFP)
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Valentino 2025 Sales, Core Profit Slide as Debt Edges Higher

A model presents a creation by Italian fashion house Valentino during the show "Interferenze" Fall/Winter 2026-2027 collection at Palazzo Barberini in Rome on March 12, 2026. (Photo by Alberto PIZZOLI / AFP)
A model presents a creation by Italian fashion house Valentino during the show "Interferenze" Fall/Winter 2026-2027 collection at Palazzo Barberini in Rome on March 12, 2026. (Photo by Alberto PIZZOLI / AFP)

Italian luxury group Valentino reported lower sales and earnings in 2025 from the previous year, while its net debt increased, a company filing showed on Tuesday.

Revenue fell 15% to €1.12 billion, ‌while earnings ‌before interest, taxes, ‌depreciation ⁠and amortization (EBITDA) dropped 41% ⁠to €174 million, the filing said.

Net debt rose to €1.13 billion at the end of 2025 from €1.08 billion a ⁠year earlier, it ‌added.

Valentino ‌is controlled by Qatar-backed Mayhoola, ‌which owns 70% of ‌the company, while French luxury group Kering holds the remaining 30%.

The fashion house ‌has been facing a slowdown in luxury demand ⁠and ⁠in November received a €100 million capital injection from Kering and Mayhoola to shore up its finances after it breached loan covenants earlier in the year.


Giorgio Armani Closes Milan Menswear Week with Mediterranean-inspired Collection

A model presents a creation for Giorgio Armani's Spring/Summer 2027 men collection in Milan, Italy June 22, 2026. REUTERS/Alessandro Garofalo
A model presents a creation for Giorgio Armani's Spring/Summer 2027 men collection in Milan, Italy June 22, 2026. REUTERS/Alessandro Garofalo
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Giorgio Armani Closes Milan Menswear Week with Mediterranean-inspired Collection

A model presents a creation for Giorgio Armani's Spring/Summer 2027 men collection in Milan, Italy June 22, 2026. REUTERS/Alessandro Garofalo
A model presents a creation for Giorgio Armani's Spring/Summer 2027 men collection in Milan, Italy June 22, 2026. REUTERS/Alessandro Garofalo

Giorgio Armani closed the Milan Fashion Week on Monday with a summer menswear collection inspired by the Mediterranean, featuring earthy tones and lightweight natural fabrics.

Models sauntered through an arcaded courtyard in a historic downtown building wearing airy ⁠garments, including softly tailored trousers ⁠and safari jackets, often paired with large bags.

"There is enormous loyalty (to the late Giorgio Armani) but there is ⁠also a moving forward," Leo Dell'Orco, head of the men's style office and chairman of the group, told journalists on the sidelines of the event.

Reuters quoted Dell'Orco as saying that he had "lengthened and narrowed the silhouette" and used slightly ⁠longer ⁠jackets, with a cohesive color palette which spanned white, sand and shades of grey.

Alongside the menswear line-up, the show also unveiled the women's Cruise collection, the first designed by Silvana Armani, Giorgio's niece.