Joanne Crevoiserat, Chief Executive Officer at Tapestry, Carla Vernon, Chief Executive Officer at The Honest Company, Reuters Editorial Events Editor Vanessa O'Connell, and Neil Blumenthal, Co-Founder & Co-Chief Executive Officer at Warby Parker attend the Reuters NEXT conference in New York City, U.S., December 4, 2025. REUTERS/Brendan McDermid

By Susan Heavey and Jessica DiNapoli

NEW YORK, Dec 4 (Reuters) - Younger shoppers are helping to drive growth in some consumer products like Honest Co diapers and Kate Spade handbags despite higher prices from tariffs and other economic pressures, while artificial intelligence boosts efficiencies and margins, several CEOs said on Thursday.

Speaking at the Reuters NEXT conference in New York, Warby Parker Co-CEO Neil Blumenthal said he expected the eyewear company to end 2025 more profitable than expected, while Tapestry CEO Joanne Crevoiserat said the Coach handbag maker was seeing growth across all income segments and in China's middle class.

“Young consumers may be putting off life moments like getting married or buying a home, which they see as unachievable, but they are still participating,” Crevoiserat said, adding that one of the company’s Kate Spade bags is gaining traction with younger consumers.

The Honest Company CEO Carla Vernón said in light of the Trump administration's tariff policies, it has a "tariff tacklers" team in place aimed at delivering growth without an extreme pricing strategy to help mitigate cost issues.

Shoppers buying Honest’s premium-priced diapers, wipes and hair products have been swapping out to smaller sizes but not buying fewer units, Vernon said.

“It's been a little bit of a moderated growth rate,” Vernon said.

Consumer products companies have seen demand weaken as shoppers, particularly in the U.S., fear a downward turn in the economy.

Blumenthal said Warby Parker has been aggressively hiring for its U.S. stores, particularly eye doctors. The company’s investment in artificial intelligence is allowing the doctors to spend more time with patients, rather than on administrative tasks, he said.

Coach is also preparing to hire employees native in artificial intelligence – what is known as Generation Alpha – as they enter the workforce, Crevoiserat said.

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(Reporting by Vannessa O'Conell, Jessica DiNapoli, Susan Heavey and Savyata Mishra, Editing by Franklin Paul, Rod Nickel)