European luxury brands are intensifying their efforts in the United States, where strong demand from affluent consumers is helping offset weaker market conditions in several other regions. A combination of rising stock markets, wealth creation driven by the technology and artificial intelligence sectors, and resilient spending among high-income households has made the US an increasingly important market for luxury retailers. 
The global luxury goods sector had started showing signs of stabilisation after a prolonged slowdown. However, the conflict that began in Iran earlier this year disrupted international travel patterns and affected luxury spending across multiple regions, extending beyond the Middle East. At the same time, China, which has been the industry's primary growth engine for more than two decades, continues to face economic challenges, including deflationary pressures and the lingering effects of its property market downturn. 
Industry experts note that wealthy American consumers have remained more resilient than their counterparts in Europe and other markets. Continued gains in technology and AI-related stocks, along with healthy wage growth among top earners, have supported spending on premium products and experiences. 
Luxury groups including LVMH, Moncler and Gucci have responded by strengthening their presence in the US. Fashion houses Dior and Gucci showcased their cruise collections in the country in recent weeks, while Italian luxury menswear brand Zegna is scheduled to present its Summer 2027 collection in Los Angeles later this week. 
The growing importance of the US is also evident in luxury retail expansion trends. According to Savills' global luxury retail report, North America became the leading region for new luxury store openings last year, marking the first time it secured the top position since the consultancy began tracking the data in 2016. 
The report showed that North America accounted for around 27% of global luxury store openings in 2025, ahead of Europe at 26% and China at 19%. At the same time, total luxury store openings worldwide fell to their lowest level since 2020, highlighting a more selective approach to expansion by global brands. 
Savills research indicates that the US still has fewer luxury stores relative to its population of ultra-wealthy consumers compared with China. Industry executives believe this leaves considerable room for future expansion. 
Retail investment is no longer concentrated solely in traditional luxury hubs such as New York and California. Brands are increasingly targeting secondary cities and states that have attracted affluent residents due to lower tax rates and changing migration patterns. 
Moncler has identified the US as a key market for new store openings this year. The company opened a store in Aspen earlier this year and plans to launch its largest global flagship store on New York's Fifth Avenue during the second half of the year. Additional locations are also planned in California's Valley Fair and Dallas, among other cities. 
Hermes has also continued its US expansion strategy. The French luxury house opened its first stores in Nashville and Scottsdale last year and plans additional openings in the Chicago metropolitan area and Brooklyn in the coming months. 
According to consultancy Bain, the luxury industry currently reflects a two-speed global market. While the United States and parts of Asia continue to generate growth, Europe and the Middle East are facing pressure from reduced tourist spending linked to ongoing geopolitical tensions. 
Although most luxury companies do not provide detailed US sales figures, first-quarter earnings showed significantly stronger performance in the broader Americas region than in other markets. Richemont, owner of Cartier, reported an 18% increase in sales across the Americas during the January-March quarter, marking its ninth consecutive quarter of double-digit growth in the region. 
The strength of American luxury consumers has also benefited domestic brands. Ralph Lauren and Tapestry, the owner of Coach, have reported stronger sales momentum than several global competitors. Company executives indicated that their core customers remain engaged and continue to spend despite broader economic uncertainty, while younger consumers are increasingly entering the luxury market. 
Analysts believe upcoming public listings in the US could further support demand for luxury watches and jewellery by creating additional wealth among investors and entrepreneurs. However, market observers caution that American consumers account for only about one-fifth of global luxury spending, meaning a broader recovery in the sector will still depend on improving conditions in China and other key markets. 
Source Reuters