Sales for the quarter ending in September reached €3.37 billion ($3.6 billion), marking a 15.6% increase at constant exchange rates, surpassing expectations. This growth was widespread across all regions, with a particular highlight in the US.
While analysts have reduced their estimates for the luxury industry, Hermès has demonstrated remarkable resilience in the face of economic challenges. The brand, renowned for its high-end products like the iconic Birkin handbag, maintained its allure among affluent consumers, even as inflation and economic uncertainty impacted luxury shopping trends.
Sales in the Americas surged by 20%, despite relatively smaller price increases compared to other parts of the world. The Madison Avenue store in New York, which opened in October the previous year, made a significant contribution to this success. In Europe, sales grew by 18.1%, with no signs of a slowdown in tourist traffic and strong sales in France.
Mainland China continued to show strong growth, with increasing store traffic and a significant recovery in business during July and August. The consistent performance across all regions and product categories emphasizes the importance of investing in quality brands during a moderating market. To account for rising production costs, Hermès raised its prices by approximately 7% globally this year, with varying increases for different regions due to currency fluctuations.
