Hermès, the luxury fashion brand known for its extravagant waitlist for handbags, has reported a 13% rise in second-quarter sales. This showcases a continued appetite for its Birkin and Kelly bags despite a decline in luxury spending.
The French fashion brand’s results stand out against its rivals including Kering, Burberry and LVMH, who have all reported a slowdown in luxury sales, sending a ripple of concerns across the sector.
In the first half of 2024, Hermès saw revenues grow by 15% at constant rates and by 12% at current rates to €7.5 billion. Recurring operating income reached €3.1 billion (42% of sales).
In the second quarter, sales increased by 13% to €3.7 billion. According to the luxury house, all regions continued to show remarkable momentum. However, there was a slowdown in sales in Asia due to “an inflection in traffic in Greater China”.
Axel Dumas, Executive Chairman of Hermès, said: “The solid first-half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model.
“The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values.”
Looking ahead, the group continues its development with confidence, thanks to its “highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients”.
Despite a buoyant Hermès, rivals are facing a dissimilar fate. Just yesterday, Kering, the fashion powerhouse that owns Gucci, Saint Laurent and Bottega Veneta, revealed that its revenue was down by 11% to £7.5 billion (€9 billion) for the first half of 2024 following a failed attempt at revitalising its star brand Gucci.
