A bold claim about the future: younger shoppers are driving growth for major consumer brands even as tariffs push prices higher and the economy wavers. That’s the core takeaway from a round of remarks by top executives at the Reuters NEXT conference in New York on December 4, 2025. The discussion highlighted how youth-market momentum, combined with advances in artificial intelligence, is shaping margins and expansion strategies across the industry.
Warby Parker Co-CEO Neil Blumenthal forecast that 2025 would end with profits surpassing earlier expectations, thanks in part to AI-driven efficiency. Joanne Crevoiserat, CEO of Tapestry, noted that growth is broad-based across income levels, with flagship brands like Coach performing well even as China’s middle class continues to expand. In addition, Crevoiserat pointed to early signs of demand for Kate Spade bags among younger customers.
Carla Vernón, CEO of The Honest Company, explained that, despite the impact of tariffs under the Trump administration, the company has instituted a dedicated team — the tariff tacklers — to sustain growth without resorting to drastic price hikes. She added that Honest’s premium diapers, wipes, and hair-care products have seen customers opt for smaller package sizes rather than reducing overall purchases, contributing to a modest but steady growth trajectory.
Economic headwinds have softened demand for some consumer goods, particularly in the United States, where shoppers worry about a potential downturn. Yet the executives emphasized that younger consumers remain engaged, choosing to allocate spending in ways that support brand loyalty and early adoption of new products.
On the store level, Warby Parker is expanding its U.S. footprint and aggressively hiring eye-care professionals. The company’s use of AI is helping clinicians spend more time with patients by reducing administrative duties. Tapestry, meanwhile, is preparing to onboard employees who bring AI fluency to the workforce, anticipating that the next generation of workers will enter with strong tech literacy.
For those who want to follow the conversation live, the Reuters NEXT World Stage broadcast is available, with ongoing coverage linked through Reuters’ event hub.
Note: This report has been updated to correctly identify the company as Tapestry (not Coach) in the ninth paragraph.
Reporting team: Vanessa O’Connell, Jessica DiNapoli, Susan Heavey, and Savyata Mishra. Editing: Franklin Paul and Rod Nickel.
Source integrity: This piece reflects Reuters’ coverage standards and their Trust Principles.
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