Most luxury companies are faring poorly in China, where consumers have pulled back on spending. But Hèrmes didn't see a big China slump, the company said Thursday. As Chinese buyers eschewed local stores and poured into Japan this year in search of luxury bargains, one high-end powerhouse was an outlier.
On Thursday, Hèrmes reported over a 7% uptick in sales revenue for Asia, excluding Japan, to 4.2 billion euros, or $4.5 billion, in the first half of this year.
Hérmes did not break out revenue specifically for China. While the Paris-based company saw a decline in foot traffic in China and more frugal consumers, sales there held relatively steady compared with last year. "The drop of the share of China is very, very small," said Axel Dumas, executive chairman of Hermès International, on the company's Thursday earnings webcast.
His remarks were translated by the company. "We had nearly no more stock and we had to replenish them." The company's success in China comes as many of Hermès' industry peers saw China and Asia revenue sales tank from softening consumer demand.
LVMH reported a 13% decline in half-yearly revenue for Asia, while Richemont and Burberry saw double-digit declines for the same time period. Gucci's parent company, Kering, reported a "deceleration" in the Asia-Pacific region on Wednesday. Hermès saw a 15.
6% jump in first-half-yearly sales in Europe and France compared to the same period last year, with a surge in footfall stemming mainly from Chines.