The resurgent demand from China has given the luxury group Hermes a strong start to the year.
Currency-adjusted sales rose 23 percent in the first quarter and reached 3.38 billion euros, the company announced on Friday in Paris. The clothing and accessories segment as well as the watch business grew at an above-average rate. Analysts surveyed by Bloomberg had only expected overall growth of 16 percent. Hermes reported a “very good” Chinese New Year after the end of the corona restrictions. But business in North and South America also grew robustly and thus bucked the prevailing concern in the industry of a slowdown in the region.
The day before, competitor LVMH had reported slowing growth in North and South America. However, some analysts see Hermes in a different league in terms of pricing power. In particular, the rare handbag models produced by the group, such as the Birkin Bag or Kelly Bag, have been in high demand for decades. Last week, Hermes opened a new leather production facility in its home market of France, with more to follow. According to CEO Axel Dumas, production capacities in the leather goods sector are to be increased by around seven percent a year. (dpa)