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.



Burberry’s Strong US Sales Offset Iran War Impact in Europe

A Burberry trench coat with the Burberry label is displayed at the Burberry flagship store in Regent Street, London, Britain, September 8, 2025. (Reuters)
A Burberry trench coat with the Burberry label is displayed at the Burberry flagship store in Regent Street, London, Britain, September 8, 2025. (Reuters)
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Burberry’s Strong US Sales Offset Iran War Impact in Europe

A Burberry trench coat with the Burberry label is displayed at the Burberry flagship store in Regent Street, London, Britain, September 8, 2025. (Reuters)
A Burberry trench coat with the Burberry label is displayed at the Burberry flagship store in Regent Street, London, Britain, September 8, 2025. (Reuters)

Burberry's recovery continued in the April-June quarter thanks to strong sales in the US and China, while it said conflict in the Middle East dented ‌tourist spending ‌in Europe.

CEO Joshua ‌Schulman, ⁠who has led ⁠a turnaround since taking the helm two years ago, has said he is focused on the two "must-win" markets of the ⁠US and China as ‌he ‌tries to revive the luxury brand.

The strategy ‌appeared to be working, ‌with Burberry saying on Friday that Gen Z customers in China helped sales increase 9% ‌in that key market from a year earlier, while ⁠sales ⁠in the Americas grew 12% as the brand attracted new customers.

Overall, comparable store sales in Burberry's first financial quarter grew 5%, in line with analysts' expectations, while sales in the Europe and Middle East region fell 3%.


Frasers Withholds Outlook as Hugo Boss and Accent Bids Cloud Forecast

People walk past a Flannels store in London, Britain, December 4, 2025. REUTERS/Hannah McKay
People walk past a Flannels store in London, Britain, December 4, 2025. REUTERS/Hannah McKay
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Frasers Withholds Outlook as Hugo Boss and Accent Bids Cloud Forecast

People walk past a Flannels store in London, Britain, December 4, 2025. REUTERS/Hannah McKay
People walk past a Flannels store in London, Britain, December 4, 2025. REUTERS/Hannah McKay

British retailer Frasers on Thursday withheld its fiscal 2027 outlook, saying ongoing takeover bids for German fashion house Hugo Boss and Australian footwear chain Accent made it difficult to forecast the year ahead.

The announcement, which accompanied news that the group had missed profit forecasts for the year to April 26, ‌sparked a near 6% ‌drop in the Mike Ashley-owned sportswear and ‌fashion retailer's ⁠shares in early ⁠trade.

The results highlight the growing complexity of CEO Michael Murray's acquisition-led strategy, which has expanded the Sports Direct owner's global footprint but also generated heavy goodwill writedowns and operating costs.

"We think (Frasers') complexity and its lack of liquidity will continue to weigh on its valuation, and we think its proposed acquisition of Hugo Boss may add ⁠to execution risk and its financial leverage," said ‌RBC Capital Markets analyst Richard Chamberlain.

The ‌group said adjusted pre-tax profit fell 4% to £538 million ($727.9 million) in fiscal 2026, ‌missing its own forecast of £550 million to £600 million and analysts' ‌consensus of £564.2 million, according to LSEG data.

BIDS YET TO YIELD RESULTS

Hugo Boss earlier this month rejected Frasers' takeover bid as "financially inadequate", while an independent committee of Accent's board also recommended that a takeover proposal from the group ‌be rejected.

Frasers booked £249.9 million of impairment charges in fiscal 2026, up sharply from a £9.6 million reversal ⁠in the prior ⁠year, after fully writing down goodwill assigned to Nordic sports retailer XXL, Dutch chain Twinsport and own-brand Everlast.

It also partially impaired goodwill relating to its South African acquisition Holdsport due to weaker growth expectations.

Frasers has also been hit by challenging market conditions, subdued consumer confidence and excess inventory in recent months, which it said continued through the second half of the year and into the starting months of fiscal 2027.

"These pressures are weighing on the entire sector, creating a prolonged and challenging environment, meaning the full potential of this progress has not yet been realised," the company said in a statement.


Kering Appoints LVMH Fragrance Chief Spitzer as New Bottega Veneta CEO

The logo of French luxury group Kering is seen at the company's headquarters in Paris, France, April 24, 2025. (Reuters)
The logo of French luxury group Kering is seen at the company's headquarters in Paris, France, April 24, 2025. (Reuters)
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Kering Appoints LVMH Fragrance Chief Spitzer as New Bottega Veneta CEO

The logo of French luxury group Kering is seen at the company's headquarters in Paris, France, April 24, 2025. (Reuters)
The logo of French luxury group Kering is seen at the company's headquarters in Paris, France, April 24, 2025. (Reuters)

French luxury group Kering has appointed Romain Spitzer as the new CEO of Bottega Veneta, it said on Wednesday.

Spitzer, currently president and CEO of Fragrance Group LVMH Beauty, will ‌join the ‌Italian fashion ‌brand ⁠from September 1, the ⁠company said in a statement.

Bottega Veneta had been without a CEO since March 31.

The previous ⁠CEO, Bartolomeo Rongone, left ‌the ‌label earlier this year to ‌lead Italy's Moncler.

Spitzer ‌is a fragrance industry veteran.

His career includes stints at Jean Paul Gaultier, ‌Yves Saint Laurent, Christian Dior and LVMH.

He ⁠was ⁠promoted in October 2025 to lead the Fragrance business at LVMH Beauty.

Kering said Spitzer will focus on enhancing Bottega Veneta's desirability, deepening connections with clients worldwide and driving retail excellence across markets.