Even as tariffs and economic jitters squeeze wallets, younger consumers are fueling growth for brands like Kate Spade and Honest Co, while artificial intelligence quietly reshapes operations behind the scenes.
At a recent business conference in New York, leaders from Warby Parker, Tapestry, and The Honest Company highlighted how Gen Z and younger millennials are still spending—just differently. Tapestry CEO noted that Kate Spade handbags are gaining traction among younger buyers, even as many delay major life milestones like marriage or homeownership.
For Honest Co, the challenge of higher import tariffs has led to the creation of a “tariff tacklers” team focused on navigating costs without aggressively hiking prices. Shoppers are trading down to smaller package sizes, but unit sales remain steady, reflecting a more cautious—but persistent—demand.
Warby Parker is seeing a surge in profitability, aided by AI investments that let eye doctors spend more time with customers instead of paperwork. Meanwhile, Tapestry is gearing up to recruit talent fluent in AI, preparing for the next wave of digitally native workers entering the job market.
Despite broader consumer uncertainty in the U.S., these companies are finding pockets of growth by blending innovation, technology, and a keen understanding of younger buyers’ habits.
