Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.



LVMH Names UK’s Sarah Burton Givenchy Creative Director

FILE PHOTO: Sarah Burton holds the British Brand award on behalf of McQueen at the Fashion Awards 2016 in London, Britain December 5, 2016. REUTERS/Neil Hall/File Photo
FILE PHOTO: Sarah Burton holds the British Brand award on behalf of McQueen at the Fashion Awards 2016 in London, Britain December 5, 2016. REUTERS/Neil Hall/File Photo
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LVMH Names UK’s Sarah Burton Givenchy Creative Director

FILE PHOTO: Sarah Burton holds the British Brand award on behalf of McQueen at the Fashion Awards 2016 in London, Britain December 5, 2016. REUTERS/Neil Hall/File Photo
FILE PHOTO: Sarah Burton holds the British Brand award on behalf of McQueen at the Fashion Awards 2016 in London, Britain December 5, 2016. REUTERS/Neil Hall/File Photo

French luxury goods company LVMH named on Monday Sarah Burton, the longtime-Alexander McQueen designer behind the Princess of Wales' 2011 wedding dress, as the new creative director for its Givenchy label.
The choice of the seasoned British designer, who joins Givenchy after nearly three decades at rival Kering's Alexander McQueen label, signals a new aesthetic direction for the label, filling a role covered by design teams since the end of last year, Reuters reported.
Her predecessor, Matthew M. Williams left Givenchy in December after three years. Known for his streetwear approach, Williams had mixed hoodies into lineups of sharp tailoring on the Paris catwalk, and embellished bags and shoes with prominent zippers and extra straps.
Burton, a famously discrete designer with a loyal following and strong design credentials, is known for flattering, deconstructed styles at McQueen, and carrying on the legacy of the label's founder, Lee McQueen following his death.
She had worked alongside him for fourteen years before becoming creative director in 2010.
Kering late last year, as part of an expansion drive at McQueen led by CEO Gianfilippo Testa, replaced her with a relatively unknown designer, Sean McGirr.
Burton will present her first collection for Givenchy next March, LVMH said.
"The arrival of Sarah Burton as head of our creative design is a very exciting moment for Givenchy," Givenchy CEO Alessandro Valenti said in a statement.
"Her remarkable career path and creative vision have already won her a vast fan base, and we are certain that under her direction, Givenchy will continue to innovate and captivate an extensive audience across the world stage," he added.