Hermes Shines Bright Amid Luxury Sector Slump

Hermes reported an 11.3% rise in third-quarter sales, highlighting the popularity of its luxury handbags. Despite a sector slowdown, Hermes's strong model and classic designs have insulated it from broader economic challenges, even as competitors like LVMH and Kering face downturns in Chinese demand.

Hermes has delivered an impressive 11.3% increase in third-quarter sales, drawing interest with its iconic luxury handbags, particularly the Birkin. This performance starkly contrasts with competitors facing declines.

The French luxury powerhouse generated €3.7 billion in revenue for the three months ending in September, aligning with analyst projections of 11% growth. Hermes's success comes amid a downturn in the high-end market impacted by decreased Chinese consumer confidence.

While major brands like LVMH and Kering face challenges, Hermes's careful management and timeless appeal continue to attract affluent buyers. However, even Hermes notes reduced traffic from aspirational clients, affecting higher volume items. Still, its shares have climbed nearly 9% this year.

(With inputs from agencies.)