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.



France Takes Aim at Ultra-Fast Fashion with New Levy

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
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France Takes Aim at Ultra-Fast Fashion with New Levy

The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)
The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. (Reuters)

France will from Tuesday impose a fee on ultra-fast fashion items that will eventually reach almost 20 euros per garment, as the government targets major Asian e-commerce platforms including Shein.

The levy follows legislation passed by the French parliament in June to regulate so-called "ultra-fast fashion" companies, known for selling large volumes of lower quality clothing at rock-bottom prices.

It is part of a push to rein in Asian e-commerce giants including Shein, Temu and AliExpress, which have exploded in popularity in France in recent years.

"The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented," said Mathieu Lefevre, the minister for ecological transition on Friday as details of the measure were published.

Under the legislation, ultra-fast fashion will be determined according to two criteria: the volume of clothing placed on the market and the cost of repairing garments relative to their purchase price.

The per-item fee will vary on a set scale according to how each product scores on both these standards.

In 2026, companies will pay fines such as a 50-cent levy on underwear falling into the ultra-fast fashion category, rising to two euros for T-shirts, nine euros for jeans and 12 euros for a jacket.

The levy could reach up to 19.50 euros ($22.60) per item by 2030, though the cap remains at 50 percent of the product's pre-tax price.

A tool to collect data independently, rather than relying solely on companies' own declarations, is under development, Lefevre's office said.

Shein, which on Monday was valued at $26.3 billion in its long-awaited Hong Kong initial public offering, declined to comment when contacted by AFP.

Temu and AliExpress did not immediately respond to requests for comment.

The measure has faced criticism over which retailers it will affect.

In July, Lefevre's office said the levy would not apply to retailers such as H&M or Zara, prompting some to say that the measure appeared to spare European and French companies.

French officials have made repeated statements that they view Shein, Temu and AliExpress as driving the surge in ultra-fast fashion.

The European Commission had also raised questions over whether the legislation complied with EU law, but Lefevre's office said those concerns had been "dispelled" and the measure was not expected to be blocked.

China meanwhile warned in July of potential retaliation over the French law, slamming the regulation as "discriminatory" and in violation of trade principles.

Imports of small parcels from China into the EU have already fallen by around 30 to 40 percent since a separate three-euro EU levy on such shipments came into force on July 1, according to the French government.


Shein Prices Hong Kong IPO at Midpoint of Range, Raises $1.74 Billion

FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
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Shein Prices Hong Kong IPO at Midpoint of Range, Raises $1.74 Billion

FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo
FILE PHOTO: A view of the reception of fast-fashion brand Shein's office in Sao Paulo, Brazil, December 15, 2025. REUTERS/Jorge Silva/File Photo

Shein on Monday priced its initial public offering in Hong Kong at the midpoint of its marketed range, raising HK$13.60 billion ($1.74 billion) from the share sale.

The online fast-fashion retailer offered 280 million shares for the listing at HK$48.56 per share, below the maximum offer price of HK$49.50 apiece announced last week, Reuters reported.

The Hong Kong public offering portion was subscribed 5.63 times, while the international offering was subscribed 2.59 times, Shein said in a stock exchange filing.

The long-awaited market debut comes after the online retailer, known for selling $5 dresses and $10 jeans to shoppers in about 160 countries, scrapped plans to list in New York and London.

Shein in an exchange filing last week said that most of the funds from the offering would be utilised to improve its technology and increase brand awareness and global presence.

The Singapore-based, Chinese-founded company's shares are slated to debut on the Hong Kong stock exchange on Tuesday.


Gap Climbs After Leadership Change at Old Navy, Profit Forecast Raise

A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
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Gap Climbs After Leadership Change at Old Navy, Profit Forecast Raise

A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)
A person shops at a Gap store in Times Square in New York City, US, November 28, 2024. (Reuters)

Gap's shares jumped as much as 24.1% to a four-month high, after the apparel retailer named industry veteran Michael Francis as CEO of Old Navy, a move aimed at reinvigorating the brand in a challenging spending environment.

Old Navy, Gap's biggest brand, has struggled to gain traction in select women's apparel categories in recent quarters, a key hurdle in the company's turnaround.

Since CEO Richard Dickson took charge in 2023, Gap has revamped its leadership and ‌marketing, boosting Gap ‌and Banana Republic, but Old Navy continues ‌to ⁠lag.

"It is true ⁠that the family demographic that Old Navy serves is under pressure, but Old Navy did not give them enough reasons to buy," said Neil Saunders, managing director of GlobalData, adding that the weakness points to a broader problem that Gap can no longer pass off as a "modest range misstep".

Gap shares were trading 15% ⁠higher at $23.95, and could add about $1.14 billion to ‌the company's market value if gains ‌hold.

Some retailers are bringing new leaders on board to revive their ‌struggling brands. Tapestry's Kate Spade last month appointed renowned designer Jonathan ‌Saunders as executive creative director.

"The appointment of a new Old Navy leader underscores management's focus on stabilizing performance at the company's largest banner," Jefferies analysts said in a note.

Francis joined Gap in March as Old ‌Navy's chief customer officer. He brings over four decades of marketing, commercial and business transformation experience, ⁠including roles ⁠at Target and Walmart.

Gap lifted its annual profit forecast after topping quarterly estimates. However, it narrowed its fiscal 2026 sales growth target, citing economic uncertainty.

Its quarterly comparable sales grew about 10%, while at Old Navy they were down 4%, the first decline in 12 quarters.

The company's forward 12-month price-to-earnings ratio stood at 8.33, compared with American Eagle Outfitters' 8.94 and Urban Outfitters' 11.93.

"Gap should be able to end the full fiscal year on a positive sales note, but it needs to get the big engine of Old Navy whirring again to keep advancing at a convincing pace," Saunders said.