American Express has surpassed first-quarter profit expectations, thanks to its focus on affluent customers. The company is now looking to expand its reach to small businesses as well, with more details expected at its upcoming investor day. Despite economic uncertainty, American Express has benefited from its high-income clientele, which has shielded it from the challenges faced by its competitors.
Cristopher Kennedy, a William Blair analyst, noted that American Express has honed in on premium consumers and small and medium enterprises (SMEs), expanding its network and enhancing its value proposition. The company is confident about its top-line growth, with multiple strategies in place to support its growth targets. Consumer spending in the U.S. increased by 8%, while spending by SMEs rose by 1%.
Stephen Squeri, CEO of American Express, expressed optimism about the future, particularly in the SME sector, which he sees as a growth opportunity. Despite potential industry changes like the acquisition of Discover Financial by Capital One Financial, American Express remains focused on executing its successful strategy. The company’s upcoming investor day will delve into its plans for its premium consumer base, small businesses, and revenue opportunities with Gen Z and millennial customers. With a strong performance in the first quarter, American Express is well-positioned for continued success in the future.