New York City, New York – American Express’s first-quarter results revealed the spending habits of its affluent cardmembers, with Chief Financial Officer Christophe Le Caillec noting that there was a significant increase in billed business on AmEx cards. Despite concerns over President Donald Trump’s tariff policies potentially causing a recession, AmEx’s wealthier customers seem to be undeterred, showing a continued increase in spending even as stock prices fluctuate.
Le Caillec pointed out that the growth in spending was largely driven by younger customers, as millennial and Gen Z cardholders showed a significant increase in spending compared to Gen X and Baby Boomer cardholders. While there is speculation that some purchases may have been pulled forward due to fears of impending tariffs, the overall stability and strength in spending at American Express suggest that the company’s customer base remains confident in their financial health.
One area of concern highlighted in the company’s earnings presentation was a slowdown in airline transactions, which only grew by 3% in the first quarter. Despite this, AmEx maintained its revenue growth guidance and earnings per share for the year, citing confidence in their ability to weather any potential economic challenges.
Le Caillec expressed optimism about the durability of the spending trends, pointing to an 8% increase in restaurant spending as a positive indicator of the confidence that cardmembers have in their financial situation. He emphasized that this discretionary expense was not something that could easily be brought forward, indicating a strong underlying confidence in the company’s customer base.
Overall, despite uncertainties surrounding tariffs and inflation, American Express seems to be on solid ground, buoyed by the continued spending of its affluent cardmembers. As the company looks ahead to the rest of the year, it remains focused on maintaining its growth trajectory and weathering any economic headwinds that may come its way.