Hermes sales jump 17.5% as demand for expensive goods persists

By Thomson Reuters Feb 9, 2024 | 1:05 AM

PARIS (Reuters) – Sales at Birkin bag maker Hermes rose 17.5% in the fourth quarter of 2023, showing the resilience of high end shoppers despite economic headwinds.

Sales for the three months to the end of September totalled 3.36 billion euros ($3.62 billion), up 17.5% at constant foreign exchange rates. That was ahead of expectations for 14% growth, according to Visible Alpha consensus estimates.

One of the most consistent performers in the luxury goods industry, Hermes has a track record of outpacing rivals when economic conditions deteriorate, thanks to its classic designs and careful management of production and stocks, which helps maintain the label’s aura of exclusivity.

Handbags like the coveted $10,000 plus Birkin model are affordable only for the wealthiest shoppers — who are typically the more immune to choppy economic conditions.

($1 = 0.9283 euros)

(Reporting by Mimosa Spencer; Editing by Matt Scuffham)