Hopes for American resurgence ignite Paris Fashion Week after Trump’s return to the White House

Luxury goods giants pin their hopes on a revival of the United States after Donald Trump’s return to the White House.

As the industry gathers at Paris Fashion Week, bosses hope their arrival will spark a recovery.

The importance of the United States to the industry was reinforced when LVMH chief executive Bernard Arnault, one of the world’s richest men, attended Trump’s inauguration in Washington with members of his family.

But concerns about demand for high-end products in China continue to cast a shadow over the sector.

Strong sales at Richemont boosted confidence about a broader recovery last week, sending stocks in the sector soaring.

The Cartier owner’s upgrade even saw leader LVMH regain its place as Europe’s most valuable company, after being number two behind Ozempic maker Novo Nordisk for almost a year and a half.

Analysts believe that companies that have a strong presence in the US will reap the rewards of a rebound in consumer confidence.

With nearly two-thirds of American adults owning stocks, Wall Street rallies “can quickly fuel perceptions of wealth,” said Susannah Streeter of Hargreaves Lansdown.

“If many Americans feel a little richer, there’s a chance the appetite for spending on luxury items will increase,” he said.

Mamta Valechha, an analyst at Quilter Cheviot, noted that in the past “a rally in the US stock market and cryptocurrencies has generated a positive wealth effect, boosting consumer confidence.”

But he said potential tariffs on European-based companies could encourage Americans to buy luxury goods abroad, rather than in their own country, at a higher price.