عربي English Türkçe اردو فارسى
Logo
Latest News
Fashion

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)
TT
TT

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.

Most Viewed

 
 
Fashion

Italy Antitrust Probes Armani, Dior over Alleged Exploitation of Workers

FILE PHOTO: People stand in front of a Christian Dior store in Piazza Di Spagna (Spanish Square) in Rome, Italy December 19, 2020. REUTERS/Remo Casilli/File Photo
FILE PHOTO: People stand in front of a Christian Dior store in Piazza Di Spagna (Spanish Square) in Rome, Italy December 19, 2020. REUTERS/Remo Casilli/File Photo
TT
TT

Italy Antitrust Probes Armani, Dior over Alleged Exploitation of Workers

FILE PHOTO: People stand in front of a Christian Dior store in Piazza Di Spagna (Spanish Square) in Rome, Italy December 19, 2020. REUTERS/Remo Casilli/File Photo
FILE PHOTO: People stand in front of a Christian Dior store in Piazza Di Spagna (Spanish Square) in Rome, Italy December 19, 2020. REUTERS/Remo Casilli/File Photo

Italy's competition authority said on Wednesday it had begun an investigation into luxury fashion groups Armani and Dior over the alleged exploitation of workers in their supply chain.
In June and April, Milan prosecutors ordered that several Chinese-owned firms in Italy - producing luxury goods for Dior and Armani - be placed under administration, accusing them of systematically abusing their employees.
The regulator alleged that Armani and Dior "emphasized the craftmanship and the excellence of their workmanship" while relying on workshops employing people on inadequate salaries, working long hours and in violation of health and safety rules.
The probe focused on some companies of the Armani Group and the LVMH-controlled Dior Group, and inspections were carried out at the companies on Tuesday, Reuters quoted the agency as saying.
"The (Armani and Dior) companies may have made untrue ethical and social responsibility claims, in particular with regard to working conditions and compliance with legality at their suppliers," the antitrust agency said.
They were placed under investigation "for possible unlawful conduct in the promotion and sale of articles and clothing accessories, in breach of the (Italian) Consumer Code," it said.
Armani and LVMH did not immediately respond to requests for comment.
Breaches of the consumer code are punishable with fines ranging from 5,000 euros ($5,456) to 10 million euros ($10.91 million).
The luxury industry's supply chain has come under increased scrutiny by consumers and investors in recent years. To reduce risks to their reputation, fashion labels have curbed the number of sub-contractors and brought production in-house.
Italy's antitrust agency also polices consumer rights and unfair commercial practices. Last year, it fined companies owned by fashion influencer Chiara Ferragni almost 1.1 million euros over misleading charity claims on a Ferragni-branded Christmas cake.