Overview
European luxury brands have intensified their focus on the United States in recent months, staging fashion shows and adding stores to tap a cohort of high-net-worth Americans whose purchasing power has been supported by gains in AI and technology sectors. The pivot to the U.S. comes as broader global demand faces obstacles - notably travel disruptions since the Iran war that started at the end of February and continuing weakness in China tied to deflationary pressures and a property market slump.
Strategic push into U.S. market
Brands including LVMH, Moncler and Gucci have expanded activity in the U.S. market. Dior and Gucci staged cruise collections in the United States last month, while Italian label Zegna is scheduled to present its Summer 2027 collection on Friday in Los Angeles. Real estate data show North America recently overtook other regions in new luxury store openings, reflecting deliberate investment to meet demand in the Americas.
According to research from Savills, North America accounted for roughly 27% of global luxury store openings in 2025, compared with 26% in Europe and 19% in China, even as global openings fell to their lowest level since 2020. The research also found the U.S. has relatively fewer luxury outlets given the size of its super-rich population, a gap many brands view as an opportunity.
Geographic spread of investment
Investment in physical retail is not limited to traditional coastal luxury centres. Savills says luxury firms are expanding into second-tier states and cities where affluent individuals have relocated, often drawn by lower tax burdens than in California or New York. Todd Siegel, president of U.S. retail at Savills, said many brands consider the U.S. under-penetrated relative to the size of its wealthy population.
Moncler has indicated the bulk of its new stores this year will be in the U.S., having opened a site in Aspen in January and planning to debut its largest global flagship on New York's Fifth Avenue later in the year, along with new locations in California's Valley Fair and Dallas, Texas. Hermes opened its first U.S. stores in Nashville, Tennessee, and Scottsdale, Arizona, last year and expects to open further locations this summer in Wilmette, north of Chicago, and in Williamsburg, Brooklyn, in September.
Two-speed luxury market
Consultancy Bain characterises the luxury market as operating at two speeds: the United States and parts of Asia are growing, while Europe and the Middle East have been affected by weaker tourist spending amid the Iran war. Although most luxury groups do not break out U.S.-specific sales, first-quarter results indicate the Americas region outperformed other regions.
Richemont, the owner of Cartier, reported 18% sales growth in the Americas from January to March, marking the group's ninth consecutive quarter of double-digit growth in the region. The strength of American buyers has also benefitted domestic groups such as Ralph Lauren and Tapestry, whose sales have outpaced some peers.
On consumer behaviour, Ralph Lauren Chief Product & Merchandising Officer Halide Alagoz noted: "Our core customers are loyal and resilient. 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 added: "We’re building emotional connections and bringing new, younger consumers into the market in North America and beyond."
Capital markets and watch and jewellery segment
Morgan Stanley analyst Edouard Aubin said forthcoming U.S. initial public offerings could spur demand for high-end watches and jewellery, but he cautioned that U.S. consumers represent only around 20% to 22% of global luxury spending and that broader recovery depends on improvement in China as well.
Market implications for brands and retail real estate
The combination of targeted store growth, U.S.-based fashion events and the relative durability of affluent American spending suggests brands are positioning to extract more value from U.S. consumers. For retail landlords and mall operators, the shift implies continued demand for premium retail space not only in flagship urban locations but increasingly in affluent suburban and regional centres.
Conclusion
Faced with travel-related spending weakness tied to geopolitical developments and lingering softness in China, European luxury brands are leaning on the United States as a key growth market. That strategy is playing out through both experiential marketing - fashion shows held stateside - and physical expansion with new stores in established and emerging U.S. luxury hubs. The approach reflects a calculated response to where demand is strongest while acknowledging that a full sector recovery will likely require improvements in other important markets.
Key points
- Luxury brands are increasing U.S. store openings and hosting U.S.-based fashion shows to capture wealthy consumers boosted by the AI and tech rally.
- North America accounted for about 27% of global luxury store openings in 2025, the highest share among regions, while global openings fell to their lowest level since 2020.
- Stronger performance in the Americas has helped groups such as Richemont, Ralph Lauren and Tapestry, highlighting regional divergence across the luxury sector.
Risks and uncertainties
- Travel disruption linked to the Iran war has reduced tourist spending, weighing on luxury sales in Europe and the Middle East.
- Continued deflationary pressure and unresolved issues in China’s property market present downside risk to a broader recovery in global luxury demand.
- The U.S. represents only about 20% to 22% of global luxury spend, so dependence on U.S. demand alone may be insufficient for full industry recovery.