American Express CEO says his business is in great shape because its wealthy Gen Z clients aren’t hurting at all

• American Express is in great shape even as the outlook of the global economy remains shaky. CEO Stephen Squeri said total billed business on AmEx cards jumped 7.5% year-over-year and new-card growth was fueled by Gen Z and Millennial customers, who made up the bulk of new customers.

The world economy is looking increasingly uncertain, but American Express’ CEO says its wealthy customers are doing just fine.

The financial services company on Thursday reported a 7.5% year-over-year increase in total billed business on AmEx cards in the first quarter, which helped push the company’s revenue up 8% year-over-year to a better-than-expected $17 billion for the period.

Driving the results was solid spending from its wealthy customer base, said CEO Stephen Squeri.

"Through the first 10 to 12 days, it's [spending] as strong as it was last quarter, maybe slightly, slightly stronger, and credit still continues to look really good," he told Yahoo Finance.

Billings on restaurants and lodging stayed strong during the quarter, even as the company saw a slight spending pullback in the airlines category. Squeri also said the company had seen no effect from “pull forward”—the idea that the delayed effect of purchases from late 2024 could be artificially buoying earnings.

Another boon for the company was the 3.4 million new cardholders it added during the quarter, 60% of which were Gen Z and Millennials, Squeri said Thursday during the company’s first-quarter earnings call. Those younger cardholders spent 14% more in the quarter, while Gen X and Boomers spent 5% and 1% more, respectively, CNBC reported.

While AmEx has traditionally been seen as the elite card of the gray-haired upper class, the brand has increasingly caught the eye of Gen Z and Millennials who have sought out the card for its “lifestyle” perks. In 2023, 75% of new consumer platinum and consumer gold accounts belonged to these two cohorts, Fortune reported.

The company is increasingly catering to younger customers through its restaurant and hotel perks, Squeri said, adding that Gen Z and Millennials spent more on eating out than any other customer demographic. AmEx has especially focused on this effort with its acquisitions of reservation apps Resy and Tock as well as its relaunch of the “Gold card,” Squeri added.

“Gold could have been renamed the restaurant card between the rewards accelerator, the Resy credit, and the Global Dining collection,” he said.

Despite some economists forecasting a recession on the horizon, Squeri said AmEx was expecting strong growth for the rest of the year and reiterated the company’s guidance of 8% to 10% revenue growth.

This story was originally featured on Fortune.com