Hermes sales jump as Birkin bag maker weathers luxury slowdown
Hermes sales surged at the end of last year as the Birkin bag maker weathered the slowdown in demand for luxury goods with its unique model driven by scarcity.
Fourth-quarter revenue climbed 17.5 per cent at constant exchange rates, Hermes International SCA said in a statement on Friday (Feb 9). Analysts expected a gain of about 14 per cent. The company also announced plans for an exceptional dividend of 10 euros a share.
Despite a cooling in demand for luxury products following the post-pandemic boom, Hermes’ brand still lures wealthy customers willing to splurge on its hard-to-get handbags and pricey silk scarves. All the main divisions of the Paris-based company grew by at least 10 per cent.
In a call with reporters, Hermes executive chairman Axel Dumas said the company plans product price hikes of 8 per cent-9 per cent on average in 2024.
Recurring operating income for the year rose to 5.65 billion euros (S$8.19 billion), topping analysts’ estimates.
Hermes results follow a mixed picture for the industry in the past quarter. LVMH, whose brands include Louis Vuitton and Christian Dior, and Cartier owner Richemont showed resilience. Companies undergoing turnarounds, such as Burberry Group and Gucci owner Kering, fared less well. BLOOMBERG
A NEWSLETTER FOR YOU
Lifestyle
Our picks of the latest dining, travel and leisure options to treat yourself.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Possible class action lawsuit against Cordlife by customers could take at least 2 years
Chinese tariffs could leave cognac makers with too much brandy
Holiday Inn owner IHG’s Q1 revenue up 2.6%, leisure travel demand remains strong
WSJ moves Asia headquarters from Hong Kong to Singapore
South Korea to slap fines on food suppliers for ‘shrinkflation’
Olam outbids Dreyfus’ sweetened deal for Australia’s Namoi, raises offer to A$0.66 per share