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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)
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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.

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France's Christian Lacroix Label Heads for Spanish Ownership

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
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France's Christian Lacroix Label Heads for Spanish Ownership

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)
Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group. (AFP)

The Spanish fashion group Sociedad Textil Lonia (STL) announced Tuesday it had reached an agreement to buy France's Christian Lacroix label, hoping to return the once-mighty brand to its former glory.

The deal to acquire Lacroix from US-based Falic group, which specializes in duty-free retail, was for an undisclosed amount in a "private transaction", STL said.

"By acquiring Maison Lacroix, with its treasure of archives and rich history of French haute couture, STL expands its brand portfolio, strengthening its international presence in the world of high fashion," STL stated in a press release.

"We will do everything we can to ensure that the unique talent of its creator and his invaluable contribution to the world of fashion reach their full potential," the group added.

Christian Lacroix was created in 1987 by the eponymous designer, with the support of luxury giant LVMH, which sold it in 2005 to Falic Group.

In 2009, following financial difficulties, the brand implemented a court-ordered recovery plan that resulted in around 100 job cuts and the discontinuation of haute couture operations.

Lacroix, now aged 73, left the group in 2010.

Having spent decades dressing celebrities, he turned to working for ballet and opera productions, as well as collaborating with other labels such as Dries Van Noten.

"The Spanish family that owns STL had the elegance to contact me ahead of the official announcement about the acquisition of the Christian Lacroix name and archives," he told Vogue Business on Tuesday. "We will probably meet soon in an informal way."

Founded in Spain in 1997, STL is a fashion company behind Spanish ready-to-wear brand Purificacion Garcia and the label of Venezuelan-American designer Carolina Herrera, employing 2,500 people and operating 600 stores worldwide, according to its website.