European luxury companies are increasingly targeting the United States as they seek to attract a growing class of affluent consumers whose fortunes have benefited from the ongoing technology and artificial intelligence boom. A wave of boutique openings, flagship stores and high-profile fashion events is helping brands offset softer demand and weaker consumer confidence in other parts of the world.
After enduring two years of declining sales, the luxury industry had begun to show signs of recovery before the outbreak of the Iran conflict at the end of February. The war has disrupted international travel and weighed on luxury spending across several regions, extending its impact beyond the Middle East.
At the same time, China, which has been the industry’s primary engine of growth for more than two decades, continues to face economic challenges linked to deflationary pressures and the lingering effects of its property market downturn. As a result, wealthy American consumers have become increasingly important to the sector.
U.S. Luxury Consumers Remain Resilient
“The U.S. 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 groups including LVMH (EU:MC), Moncler (BIT:MONC) and Gucci (EU:KER) have moved quickly to capitalize on this trend.
Last month, both Dior and Gucci showcased their cruise collections in the United States, while Italian fashion house Zegna is scheduled to unveil its Summer 2027 collection in Los Angeles on Friday.
Store Expansion Accelerates Across America
North America became the leading market for new luxury store openings in 2025 for the first time since Savills began tracking the sector in 2016.
According to the real estate firm’s latest global luxury retail report, North America accounted for approximately 27% of all luxury store openings worldwide last year, compared with 26% in Europe and 19% in China. Overall, the number of new luxury stores globally fell to its lowest level since 2020.
Untapped Potential Beyond Major Cities
Research from Savills suggests the United States remains relatively underpenetrated by luxury retailers when compared with the size of its ultra-wealthy population.
“Many brands still view the U.S. as unpenetrated relative to the scale of its wealth base,” said Todd Siegel, Chicago-based president of U.S. retail at real estate firm Savills.
Luxury companies are increasingly looking beyond traditional markets such as New York and Los Angeles, targeting secondary cities and states that have attracted affluent residents seeking lower taxes and lifestyle changes.
Moncler, for example, has indicated that most of its planned store openings this year will be in the United States. The company launched a location in Aspen earlier this year and plans to open its largest global flagship store on New York’s Fifth Avenue later in 2026, alongside new stores in California’s Valley Fair and Dallas.
Meanwhile, Hermès (EU:RMS) expanded into Nashville, Tennessee, and Scottsdale, Arizona, last year and plans additional openings near Chicago and in Brooklyn during the coming months.
A Two-Speed Luxury Market
Consultancy Bain described the current luxury landscape as a “two speed world,” with the United States and parts of Asia continuing to grow while Europe and the Middle East face pressure from weaker tourism and the consequences of the ongoing Iran conflict.
Although most luxury companies do not break out U.S.-specific results, first-quarter earnings reports suggest the Americas significantly outperformed other regions.
Richemont (BIT:1CFR), owner of Cartier, reported an 18% increase in sales across the Americas between January and March, marking its ninth consecutive quarter of double-digit growth in the region.
American Luxury Demand Benefits Domestic Brands
The strength of affluent U.S. consumers has also supported American luxury and premium brands.
Ralph Lauren (NYSE:RL) and Tapestry (NYSE:TPR), the owner of Coach, have both delivered stronger sales growth than many competitors.
“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 behaviours are not changing. On the contrary, consumers during these turbulent times want to come to brands that they can trust.”
Tapestry Chief Executive Joanne Crevoiserat also highlighted growth opportunities in the region.
“We’re building emotional connections and bringing new, younger consumers into the market in North America and beyond,” she said.
China Remains Critical for a Full Recovery
Despite the strength of U.S. spending, analysts caution that the luxury sector cannot rely solely on American consumers for a sustained recovery.
Morgan Stanley analyst Edouard Aubin noted that upcoming U.S. stock market listings could stimulate demand for luxury watches and jewellery, but emphasized that American buyers account for only around one-fifth of global luxury spending.
“It’s nice, it’s helpful, but you need China to get better as well for the sector to really recover,” he said.
