Birkin bags help drive sales for Hermès
Hermès sales soared as wealthy shoppers splashed the cash on their five figure Kelly and Birkin handbags.
Revenues at Parisian fashion house grew 15.6 per cent to (€3.3bn) £2.93bn in the year quarter as the company was helped by demand for its luxury leather goods such as designer handbags.
In America, earnings grew 20 per cent to €1.7bn (£1.48bn), surpassing analysts’ expectations, thanks to the opening of its sixth store in California.
Europe and Asian markets also performed well with revenues both up 20 per cent.
Hermes said that its European arm was boosted by the loyalty of local clients and the “dynamics” of tourist flows.
Axel Dumas, executive chairman of Hermès, said: “The solid performance in the third quarter reflects the desirability of our collections all over the world, with still a sustained momentum in Asia and in the Americas.
“More than ever, in an uncertain global environment, we are reinforcing our investments and our teams to support growth.”
Luxury fashion brands have been seemingly resilient to the cost of living crisis.
Victoria Scholar, head of investment at interactive investor said: “Hermes is managing to defy the economic headwinds thanks to price hikes which don’t appear to be weighing on customer demand.”
“Unlike most goods where demand softens as prices rise, the luxurious allure of a Hermes bag, with some costing over £10,000, only seems to improve as prices increase.
She added: “Some ultra wealthy individuals have also been turning to the luxury goods market as a source of alternative investments where prices seem to go up and up.”