When Hermes recently opened her shop on Madison Avenue in New York City, threw a glamorous party with Broadway singers who were in a musical written especially for the occasion. Well-dressed diners, in some cases carrying Birkin bags, sipped champagne and sampled food from whimsical flasks dyed Hermès’ signature orange. Such events are commonplace in the high-end world of high fashion and luxury goods, but the latest one, held on Madison Avenue, underscores how much the industry cares about its biggest market, even as concerns about the course of the economy escalate and inflation soar. rampant. Why not? Demand for high-end handbags and clothing in the U.S. recovered quickly after the lifting of pandemic-related restrictions and has proven surprisingly resilient since then.

U.S. luxury goods sales grew nearly twice as fast as the global average in 2021 and 1.5 times as fast in the first half of 2022, according to Citi Research. Industry-leading multi-brand group LVMH recently reported 19% year-over-year revenue growth in the US, while Hermès reported 24% revenue growth. Even the summer luxury sales boom in Europe was supported by large American tourists. They were also supported by the strengthening of the dollar against the euro.

It remains to be seen whether this positive momentum will continue in the US, given that clouds are gathering over the economy. After several years of double-digit growth in the haute couture and luxury sector, analysts say a touchdown that results in slower growth is inevitable. However, the two largest players still see the US as a priority for new investment. Holding back on cuts, the LVMH and Cartier groups plan to continue expanding in the United States. “The short-term economic outlook is hard to predict, but we know we need more presence in the US,” Cartier CEO Siri Vigneron said in an interview. Synonymous with luxury watches and jewelry, Cartier is owned by the Swiss conglomerate Richemont and has doubled its US operations in the past five years. This was mentioned by Mr. Vigneron, who added that he was confident that he could attract more American clients. To that end, Cartier wants to expand its store count from 30 to 40 in areas like Seattle and Florida, as well as other Texas locations where it already has a presence.

With sales of €78 billion in 2021, the U.S. luxury market is the largest in the world, surpassing China’s €60 billion market, and growing rapidly, according to Bain. And the reason, finally, is that the average age is decreasing, and the audience is diversifying and expanding geographically, beyond the traditional hubs of New York and California.