Hermès Defies Luxury Sector Gloom

Third quarter gross sales at Birkin bag maker Hermès rose briskly, up 15.6 p.c year-on-year, with the tempo of progress slowing solely barely in a present of resilience of its rich clientele despite financial headwinds.

Gross sales for the three months to the top of September stood at €3.37 billion ($3.60 billion), a 15.6 p.c rise at fixed trade charges, beating a Seen Alpha consensus for 14 p.c progress, with brisk gross sales in all areas, notably in the USA.

Analysts have lowered their estimates for the posh sector in latest weeks, following a gross sales report from bellwether LVMH earlier this month exhibiting customers are splurging much less on excessive finish style as inflation and financial uncertainty rise.

However Hermès, which caters to customers who can afford purses just like the coveted $10,000 plus Birkin mannequin, has a repute of weathering financial turbulence higher than rivals.

By Mimosa Spencer; Editor: Ingrid Melander

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