Hermes Defies Luxury Sector Slump with Strong Sales Amid Chinese Downturn

Hermes has reported strong third-quarter sales, significantly outpacing rivals suffering from a downturn in Chinese demand. The French luxury brand posted an 11.3% revenue rise, driven by its exclusive handbag offerings. Hermes continues to invest heavily in China despite slower growth in the Asia Pacific region.

On Thursday, the luxury brand Hermes announced a robust rise in its third-quarter sales, confirming its position at the forefront of the market despite challenges faced by competitors due to a decline in Chinese consumer demand. The company reported a formidable 3.7 billion euros in revenue, reflecting an 11.3% increase.

Hermes remains committed to its medium-term revenue growth forecast, with plans to continue hiring amid global uncertainty. Bernstein analyst Luca Solca highlighted Hermes' strategic alignment as a portfolio stronghold against the impending global economic slowdown.

While the luxury sector grapples with a broader deceleration, Hermes' superior craftsmanship and scarcity management enhance its brand exclusivity. Despite lower consumer traffic post-Chinese New Year, Hermes compensates through increased average baskets, sustaining its growth trajectory.

(With inputs from agencies.)