After two years of stagnation, the luxury goods sector had only just begun to show signs of stabilization when, in late February, war with Iran broke out. The conflict paralyzed global tourism and hit luxury spending far beyond the Middle East. With China — the industry’s main growth engine for the past two decades — still struggling with deflation and a prolonged real estate crisis, the sector now needs wealthy Americans more than ever.

“The US premium consumer has proven much more resilient to crises than buyers in other regions, especially in Europe,” says Marcus Morris-Eyton, portfolio manager at AllianceBernstein in London. He added that the ongoing rally in AI-related tech stocks and steady wage growth have significantly strengthened this cohort of consumers.

Luxury giants such as LVMH, Moncler, and Gucci have reacted quickly. Dior and Gucci last month held cruise collection shows in the United States, while Italian brand Zegna is preparing to present its “Summer 2027” collection in Los Angeles.

Moreover, according to a global report by real estate consultancy Savills, which has tracked the commercial property market since 2016, North America has for the first time in history taken the top spot in the number of new luxury boutique openings. The region accounted for about 27% of global openings in 2025, compared to 26% in Europe and just 19% in China. Globally, however, expansion has slowed to its lowest pace since the pandemic in 2020.

The American market still has huge potential

According to Savills, the number of luxury boutiques per ultra-wealthy individual in the US is still significantly lower than in China.

“Many brands still view the US as an underpenetrated market compared to the actual scale of its wealth,” says Todd Siegel, president of Savills’ US retail division in Chicago.

Investment in new retail space is no longer limited to traditional East and West Coast hubs. Expansion is increasingly targeting “second-tier” states and cities, where wealthy residents are relocating in large numbers, attracted by lower tax rates than in California or New York.

For example, Italian luxury outerwear brand Moncler says most of its new store openings this year will be in the US. In January, the brand opened a location in the upscale ski resort Aspen, and later this year plans to launch its largest flagship store worldwide on New York’s Fifth Avenue, as well as new boutiques in Dallas (Texas) and Valley Fair (California).

French luxury house Hermès opened its first boutiques in Nashville (Tennessee) and Scottsdale (Arizona) last year. This summer it plans further expansion in Plaza del Lago north of Chicago, and in September in Williamsburg (Brooklyn).

A two-speed world: the US vs. the rest

Consultants at Bain describe the luxury sector as now operating in a “two-speed world”: the US and parts of Asia are growing steadily, while Europe and the Middle East are stagnating due to a sharp drop in tourism spending amid the ongoing war with Iran.

Most European conglomerates do not disclose US-specific figures, but their Q1 2026 earnings reports show that growth in the American region is significantly stronger than elsewhere.

• Richemont (owner of Cartier) reported US sales growth of 18% from January to March. This marks the ninth consecutive quarter of double-digit growth in the region.
• The strength of the US consumer has also boosted local players such as Ralph Lauren and Coach owner Tapestry, whose sales have outperformed European rivals.

“Our key customers are loyal and resilient to economic shocks,” says Ralph Lauren Chief Product and Merchandising Officer Khalide Alagoz. “Their buying behavior has not changed. In fact, in turbulent times, consumers want to stay with brands they trust unconditionally.”

Tapestry CEO Joanne Crevoisera also sees major growth potential in North America: “We are building emotional connections and attracting a younger generation of consumers.”

Morgan Stanley analyst Edward Auben adds that a wave of upcoming tech IPOs in the US could further boost spending by wealthy Americans on watches and jewelry. However, he warns that US consumers still account for only around 20–22% of global luxury consumption.

“The American market is currently a strong support for the industry, but for a full global recovery we still need to see improvement in China,” he concludes.