US Luxury Brands Surge: Ralph Lauren, Tapestry & Expansion Plans

The American luxury market continues to demonstrate surprising resilience, even as broader economic forecasts remain uncertain. Recent earnings reports and strategic moves from key players like Ralph Lauren and Tapestry (parent company of Coach) paint a picture of a sector not just surviving, but thriving, fueled by a combination of brand elevation, targeted marketing, and a renewed focus on key urban centers.

Ralph Lauren, in particular, experienced a significant boost during the 2025 holiday season, driven by a viral resurgence in popularity linked to its nostalgic aesthetic on social media. This surge translated into a February 11th announcement that the company was revising its fiscal 2026 outlook upward, anticipating stronger revenue and improved operating margins, especially in China and major global cities. The company’s performance is now reshaping expectations for growth, with an eye toward becoming a $10 billion brand by the end of the decade.

Tapestry is also on a similar trajectory. Coach, a key component of the Tapestry portfolio, saw sales jump 25% in the second quarter, contributing to an overall 14% increase in Tapestry’s sales. This success isn’t accidental. According to reports, the company is strategically investing in brand elevation and increasing its marketing presence in influential cities like Miami, Los Angeles, and New York – a playbook now being adopted by European luxury brands as well.

This focus on key cities extends beyond marketing spend. Hermès, for example, is planning a significant expansion of its Rodeo Drive flagship store in Los Angeles, signaling a long-term commitment to the American market. “Our Rodeo Drive store is becoming too small,” Hermès executive chairman Axel Dumas stated, indicating a substantial investment in a future project. Similarly, Moncler has doubled down on its presence in ski destinations, opening a second store dedicated to its Moncler Grenoble line in Aspen, following a launch in Saint Moritz in December 2023, and planning a Fifth Avenue flagship in New York for later this year.

The trend isn’t limited to retail expansion. Luxury houses are increasingly viewing the United States as a prime location for high-profile events. Several brands are slated to stage their resort 2027 shows stateside in May, further cementing the country’s importance on the global fashion calendar.

However, the luxury market isn’t monolithic. While the high end – brands like Hermès, Loro Piana, Brunello Cucinelli, and Cartier – continues to perform exceptionally well, catering to an ultra-wealthy clientele, Notice signs that the gap between the top and bottom tiers is beginning to narrow. Morgan Stanley managing director Édouard Aubin noted that the “K-shaped economy” – where the wealthy prosper while others lag – remains a factor, but the disparity in organic growth performance has decreased.

Brands with broader customer bases, like Burberry, Gucci, and Ferragamo, are showing early signs of recovery. Burberry’s comparable retail sales grew 3% in the third quarter of fiscal 2026, while Ferragamo saw a smaller decline in the fourth quarter, with sales down only 2%, and a 6.3% rise in direct-to-consumer sales. This suggests a potential stabilization as consumer confidence gradually improves.

Jewelry continues to be a standout performer within the luxury sector. LVMH’s watches and jewelry division saw an 8% increase in sales, while Hermès’s “other sectors” (including jewelry) experienced a 12.9% jump. Richemont, whose portfolio includes Cartier and Van Cleef & Arpels, exceeded expectations with a 14% increase in jewelry sales. Kering is also making strategic moves in this space, acquiring jewelry manufacturer Raselli Franco in December 2025 to bolster its industrial capabilities and reduce its reliance on the cyclical fashion market.

Looking ahead, Kering’s CEO, Jean-François de Meo, cautioned that the current positive momentum is contingent on the stability of the stock market. “A lot of Americans have savings held in stocks,” he explained. “So if the market holds up well, it will keep driving growth in our sector. If there’s a crash – say an AI bubble – we’ll talk again.” This highlights the delicate balance between consumer spending and broader economic conditions that will shape the future of the luxury market.