The French luxury brand Hermès is bucking the trend with increasing sales

French luxury group Hermès reported a rise in third-quarter sales on Thursday, October 24, bucking the industry’s general gloom caused by declining sales in China. The luxury house, known for its leather bags and silk scarves, reported a 10% increase in overall sales to €3.7 billion in the July-September period.

China is the top-spending country in the world in the luxury sector, accounting for half of global sales. But as the post-pandemic recovery stalls, consumption has fallen, throwing the industry into turmoil.

“Hermès stands out from other large corporations,” Hermès chief financial officer Éric du Halgouet told reporters. Its main competitors, global luxury leader LVMH and Kering (Gucci and Yves Saint Laurent), reported declining sales in the third quarter, falling 4.4% and 15%, respectively.

In Hermès’ greater China region, which includes Macau and Taiwan, there has been “no turnaround” in sales growth, du Halgouet said. The Greater Asia region, which excludes Japan, posted quarterly growth of 0.6%, “despite the decline in Greater China traffic observed since the end of Chinese New Year and a high base in the third quarter of last year,” the company said in a statement Communication statement.

Du Halgouet said the decline in footfall at Chinese stores would be offset by higher spending per customer, particularly on jewelry, leather goods and ready-to-wear. Hermès also recently opened a 1,000 square meter boutique in Shenzen and plans to open two more in Shenyang and Beijing.

The luxury group posted double-digit sales increases in its other major markets, including an 11% increase in the Americas and an 18% increase in Europe and Japan. Du Halgouet said sales in these regions continued at the same pace as in the fourth quarter in October. Sales of leather goods, Hermès’ top segment, rose by 12.7% to 1.57 billion euros. Clothing and accessories rose by 12.1% to €1.13 billion.

While CEO Axel Dumas last month in a Financial Times In an interview about the possibility of Hermès entering haute couture, du Halgouet said this was not a short-term project for the company but could be added to the group’s overall strategy.

Le Monde with AFP

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