Hermes, the producer of the Birkin bag, reported a significant increase in third-quarter sales, with year-over-year growth of 15.6%. This growth rate exceeded forecasts and slowed only slightly, demonstrating the resiliency of Hermes’ rich clientele in challenging economic conditions.
Sales for the three months ending in September came to 3.37 billion euros, equivalent to $3.60 billion. At constant exchange rates, this represents a 15.6% increase rather than the 14% growth that the Visible Alpha consensus predicted. Sales were robust in all areas, but notably in the United States.
Following a sales report from industry bellwether LVMH earlier this month indicating buyers are wasting less on high-end fashion as inflation and economic uncertainty mount, analysts have cut their expectations for the luxury sector in recent weeks. This comes after the report showed shoppers are splurging less on high-end fashion.
On the other hand, Hermes is known for weathering economic storms better than its competitors because it caters to customers who can afford expensive purses like the coveted Birkin model, which can cost more than $10,000.
“Despite an uncertain context, our outlook remains unchanged,” Eric du Halgouet, Hermes executive vice president of finance, told the media about the robust growth in the United States and Asia, especially China. “Our outlook remains unchanged.”
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