Luxury is moving to America: brands are chasing the new AI rich

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

After two years of contraction the sector was showing signs of stabilisation until the Iran war began at the end of February, disrupting travel and denting luxury spending far beyond the Middle East. China, the biggest source of luxury growth for two decades, is still struggling with deflation and the lingering effects of a property crisis. The sector needs rich Americans more than usual.

“The U.S. high-end consumer has been much more resilient than we are seeing elsewhere, especially in Europe,” says Marcus Morris-Eyton, portfolio manager at AllianceBernstein in London, crediting the continued AI rally and healthy wage growth.

Brands have moved fast. Dior and Gucci showed their cruise collections in the US. Zegna is presenting its Summer 2027 collection in Los Angeles.

The numbers confirm the shift. Last year North America took the top spot for new luxury store openings for the first time: about 27% of global openings, against 26% in Europe and 19% in China — even as total openings fell to their lowest level since 2020. The US also has fewer luxury stores relative to its number of super-rich consumers than China. “Many brands still view the U.S. as unpenetrated relative to the scale of its wealth base,” says Todd Siegel, president of US retail at Savills.

The investment is not limited to major coastal cities. High-net-worth individuals have moved to second-tier states and cities with lower taxes than California or New York, and brands are following. Moncler opened in the ski resort of Aspen in January and plans its largest global flagship on New York’s Fifth Avenue in the second half of the year, plus locations in California’s Valley Fair and Dallas. Hermès opened its first stores in Nashville and Scottsdale last year, arrives at the Plaza del Lago shopping centre in Wilmette, north of Chicago, this summer, and in Williamsburg, Brooklyn, in September.

The sector is described as a “two-speed world”: the US and parts of Asia growing, Europe and the Middle East hit by weaker tourist spending. Most brands do not break out US figures, but their quarterly reports show the Americas far outpacing other regions. At Cartier owner Richemont, Americas sales grew 18% from January to March — a ninth consecutive quarter of double-digit growth in the region.

American groups benefit too: sales at Ralph Lauren and Coach owner Tapestry have outpaced rivals. “Our core customers are loyal and resilient,” says Ralph Lauren chief product and merchandising officer Halide Alagoz. “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 CEO Joanne Crevoiserat sees room to grow in North America: “We’re building emotional connections and bringing new, younger consumers into the market.”

Still, no one should get carried away. Morgan Stanley analyst Edouard Aubin says upcoming US IPOs could drive spending on high-end watches and jewellery, but cautions that Americans account for only 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.”