Third quarter sales at Birkin bag maker Hermès rose briskly, up 15.6 percent year-on-year, with the pace of growth slowing only slightly in a show of resilience of its wealthy clientele in spite of economic headwinds.
Sales for the three months to the end of September stood at €3.37 billion ($3.60 billion), a 15.6 percent rise at constant exchange rates, beating a Visible Alpha consensus for 14 percent growth, with brisk sales in all regions, particularly in the United States.
Analysts have lowered their estimates for the luxury sector in recent weeks, following a sales report from bellwether LVMH earlier this month showing shoppers are splurging less on high end fashion as inflation and economic uncertainty rise.
But Hermès, which caters to shoppers who can afford handbags like the coveted $10,000 plus Birkin model, has a reputation of weathering economic turbulence better than rivals.
By Mimosa Spencer; Editor: Ingrid Melander
Case Study | Inside Hermès’ Best-in-Class Leather Goods Strategy
How a unique approach to supply chain, design, communications and retail has powered blockbuster demand for iconic bags like the Birkin and Kelly, enabling the French leather goods house to face down rivals and become a global megabrand with a market capitalisation greater than Nike’s.