Birkin bag maker Hermes reported on Thursday an 11.3% rise in third-quarter sales, continuing to outshine rivals hit hard by a downturn in China as its luxury handbags lure wealthy shoppers. The French luxury company generated 3.
7 billion euros ($3.99 billion) in revenue for the three months ending in September, an 11.3% rise at constant exchange rates, Reuters reported.
The figure was in line with an analyst consensus estimate of 11% growth cited by Jefferies. "In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty," said Axel Dumas, Executive Chairman of Hermes. "Thanks to the singularity of its model, Hermes is continuing its recruitments and long-term investments," he said in a statement.
A sector-wide slowdown has affected labels across the high-end spectrum. Luxury bellwether LVMH missed expectations last week and flagged a drop in Chinese consumer confidence to COVID-era lows, with a deterioration in demand for fashion over the quarter. Late on Wednesday, Kering warned its 2024 operating income would almost halve to its lowest in years as weak demand in China deepened the struggles of the French luxury goods group's main label Gucci.
Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity and made the company one of the most consistent performers in the industry. Handbags like the coveted.