PARIS, Oct 24 (Reuters) – Third quarter sales at Birkin bag maker Hermes rose briskly, up 15.6% year-on-year, with the pace of growth beating expectations and slowing only slightly in a show of resilience of its wealthy clientele in spite of economic headwinds.
Sales for the three months to the end of September stood at 3.37 billion euros ($3.60 billion), a 15.6% rise at constant exchange rates, beating a Visible Alpha consensus for 14% growth, with brisk sales in all regions, particularly in the United States.
Analysts have lowered their estimates for the luxury sector in recent weeks, following a sales report from bellwether LVMH earlier this month showing shoppers are splurging less on high end fashion as inflation and economic uncertainty rise.
But Hermes, which caters to shoppers who can afford handbags like the coveted $10,000 plus Birkin model, has a reputation of weathering economic turbulence better than rivals.
“Despite an uncertain context, our outlook remains unchanged,” Eric du Halgouet, Hermes executive vice president finance, told journalists, noting strong growth in the United States and Asia, including China.
($1 = 0.9368 euros)
Reporting by Mimosa Spencer
Editing by Ingrid Melander
Our Standards: The Thomson Reuters Trust Principles.
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