Paris
Hermès, the French maker of Birkin handbags, has “defied an industry-wide trend for slower sales in the US – luxury’s biggest market – and Europe as wealthier consumers continued to spend”, says Adrienne Klasa in the Financial Times. Overall, however, group sales rose 15.6% in the third quarter from a year earlier – slower than the 27.5% growth recorded in the three months to the end of June. Revenue growth was in the double digits in all regions, but weakest in Asia, excluding Japan, where the delay in China lifting its Covid restrictions last year had led to an “exceptional” growth in sales in 2022. Still, the company remains confident even if the “global environment” is “uncertain”. For one, “its limited production capacity creates a backlog of orders for its prized handbags and greater pricing power”, says Angelina Rascouet on Bloomberg. Its customers tend to be loyal and wealthy. Other luxury goods groups serve “less affluent” consumers contending with high inflation. It is these firms that are feeling the
