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Adidas Reduces Inventory Levels More Than Planned 

Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
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Adidas Reduces Inventory Levels More Than Planned 

Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)
Football - FIFA World Cup Qatar 2022 - Third-Place Playoff - Croatia v Morocco - Khalifa International Stadium, Doha, Qatar - December 17, 2022 General view of FIFA president Gianni Infantino's Adidas shoes during the medal ceremony. (Reuters)

Adidas said on Wednesday that inventory levels continued to decline in the third quarter as the German firm curbed its selling into wholesalers, while lower costs helped increase its gross margin.

Inventory levels were down 23% on the year to 4.85 billion euros ($5.18 billion), a little more than expected, Adidas said.

Adidas last month lifted its full-year guidance, partly thanks to the positive impact of the release of Yeezy shoes during the second and third quarter.

Adidas' gross margin for the quarter was up 0.2 percentage points, to 49.3%, thanks to reduced freight costs and less discounting.

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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)
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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.