American Express’s CEO Stephen Squeri announced a 7.5% year-over-year increase in total billed business on Amex cards in the first quarter, driven by strong spending from its wealthy customer base and new cardholders primarily from Gen Z and millennials. The company reported revenue of $17 billion, exceeding expectations.
New cardholders added during the quarter spent 14% more than existing customers, with Gen Z and millennials contributing to the growth. This shift is a result of Amex’s focus on catering to younger customers through its restaurant and hotel perks, such as the relaunched Gold Card and acquisitions of reservation apps Resy and Tock.
Despite concerns over the global economy, Squeri expressed confidence in the company’s future growth, citing strong demand from its core customer base. The CEO also stated that Amex is not affected by “pull forward” effects, which could have artificially boosted earnings. With revenue guidance of 8-10% for the year, Amex remains optimistic about its prospects.
Source: https://fortune.com/article/american-express-ceo-gen-z-milennials-spending