Hermes to Raise Prices after Q4 Sales Boom

(FILES) This picture taken on December 20, 2017 shows the logo of the French fashion main house and luxury goods Hermes outside a shop in the fashionable and luxurious street "rue du faubourg Saint-Honore" in Paris. (Photo by STEPHANE DE SAKUTIN / AFP)

Birkin bag maker Hermes said it will raise prices this year after sales jumped 17.5% in the fourth quarter of 2023, demonstrating the resilience of high end shoppers despite economic headwinds.
Sales for the three months to the end of September totaled 3.36 billion euros ($3.62 billion), up 17.5% at constant foreign exchange rates. That was ahead of expectations for 14% growth, according to Visible Alpha consensus estimates.
The company plans to lift prices by between 8% and 9% this year globally, executive chairman Axel Dumas told reporters on Friday, according to Reuters.
One of the most consistent performers in the luxury goods industry, Hermes has a track record of outpacing rivals when economic conditions deteriorate, thanks to its classic designs and careful management of production and stocks, which helps maintain the label's aura of exclusivity.
Handbags like the coveted $10,000 plus Birkin model are affordable only for the wealthiest shoppers -- who are typically the more immune to choppy economic conditions.
Hermes will pay a 4,000 euro bonus to each of its over 22,000 employees worldwide, the company said.