Home Money Birkin bag maker Hermes bucks the trend and boosts profits

Birkin bag maker Hermes bucks the trend and boosts profits

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Must-have: Emma Hernan from television with a Birkin bag

Must-have: Emma Hernan from television with a Birkin bag

Birkin bag maker Hermes has weathered a slowdown in luxury demand to report surging sales.

The French firm’s second-quarter revenue was £3.1 billion, up 13 percent from the same period a year earlier.

Sales were strong everywhere except in Asia.

Its results tend to be less volatile than those of other luxury houses because it enjoys strong pricing power and long waiting lists for coveted products such as its Kelly and Birkin bags, which start at £10,000.

Luxury sales have largely normalised following the post-pandemic boom. LVMH’s results fell short of expectations.

Gucci owner Kering expects profits to fall further in the second half of the year, while Cartier owner Richemont has been hit by continued subdued demand in China.

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