Hermès sales exceeded all expectations, reaching a record 24 percent increase instead of the estimated 15 percent increase. Despite a decline in its share value, which fell nearly 15 percent in 2022, the luxury giant has maintained its lead over the competition thanks to spending tourists, particularly Americans with a strong dollar. In comparison, Kering recorded a 14 percent increase in sales. The Gucci brand fell short of expectations with slight growth of 9 percent.
“Right now we don’t see any signs of slowing down in any of our markets,” Hermès executive vice president of finance Eric du Halgouet told Reuters during a conference call.
Like many other luxury houses, Hermès does not have to worry about the economic situation of its affluent customers and is expected to increase prices by five to ten due to rising costs and currency fluctuations. According to Reuters, this increase is “much stronger than in the past, after a strong increase in sales in the third quarter with no signs of slowing down.”
The Paris-based company also announced that it will increase hiring in the second half of the year after adding 800 new jobs in the first half. In July, the company increased salaries for its European employees due to inflation.
This translated article first appeared on FashionUnited.uk.