Sales at Birkin bag maker Hermes accelerated in the second quarter, lifted by continued growth in the United States and a sharp acceleration in China, showing the resilience of global demand for the group's high-end leather goods despite a clouded economic backdrop.
Group sales for the three months to the end of June came to 3.32 billion euros ($3.65 billion), up 27.5% at constant exchange rates, above a Visible Alpha consensus for 22% growth, with double digit growth in all regions.
Hermes' results come as luxury stocks have come under pressure due to uncertainty over the pace of China's post-pandemic recovery while a months-long spending frenzy in the US market cools amid rising inflation.
Lackluster economic figures for China and more cautious outlooks from Cartier-owner Richemont and industry bellwether LVMH pushed down shares of luxury companies down in recent days.
Hermes, which targets wealthier consumers with handbags like the coveted $10,000 plus Birkin model, is known for weathering economic turbulence better than rivals.
"We've seen no interruption in (growth) trends," Hermes Executive Chairman Axel Dumas told journalists, adding there had been a "flight to quality" by shoppers preferring to buy at the very top end of the luxury market.
