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Hermes Defies Luxury Slowdown with Strong Sales 

Rachel Koffsky, International Senior Specialist at Christie's Handbags & Accessories, poses with a piece titled "A rare, fauve barenia leather & bog oak Kellywood 22 with palladium hardware, Hermes, 2020" which is on display as part of "Handbags Online: The London Edit" at Christie's in London, Britain, November 18, 2021. (Reuters)
Rachel Koffsky, International Senior Specialist at Christie's Handbags & Accessories, poses with a piece titled "A rare, fauve barenia leather & bog oak Kellywood 22 with palladium hardware, Hermes, 2020" which is on display as part of "Handbags Online: The London Edit" at Christie's in London, Britain, November 18, 2021. (Reuters)
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Hermes Defies Luxury Slowdown with Strong Sales 

Rachel Koffsky, International Senior Specialist at Christie's Handbags & Accessories, poses with a piece titled "A rare, fauve barenia leather & bog oak Kellywood 22 with palladium hardware, Hermes, 2020" which is on display as part of "Handbags Online: The London Edit" at Christie's in London, Britain, November 18, 2021. (Reuters)
Rachel Koffsky, International Senior Specialist at Christie's Handbags & Accessories, poses with a piece titled "A rare, fauve barenia leather & bog oak Kellywood 22 with palladium hardware, Hermes, 2020" which is on display as part of "Handbags Online: The London Edit" at Christie's in London, Britain, November 18, 2021. (Reuters)

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.

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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo

Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said.
The company is exploring this option to facilitate its IPO, one of the people said, according to Reuters.
If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule.
Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing.
However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week.
The people declined to be identified as they were not authorized to speak to the media.
Shein declined to comment.
Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's $2.9 billion deal, according to Dealogic.
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known.
London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time.
In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers.
Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from US lawmakers.
Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research.