PARIS (Reuters) -Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.
Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.
Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.
One of the most steady performers in the luxury goods sector — even as economic conditions worsen — the French group’s results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.
Hermes’ famously classic designs and tight management of production and stock have helped reinforce the label’s aura of exclusivity, and CEO Axel Dumas told reporters the company had seen “no big interruption in trends”.
However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.
($1 = 0.9209 euros)
(Reporting by Mimosa SpencerEditing by Alexandra Hudson and David Evans)
