- NEWS Desk Global
HERMES QUARTERLY SALES JUMP 17% ON STRONG CHINA DEMAND
Hermes, the renowned maker of Birkin bags, announced a remarkable 17% increase in first-quarter sales on Thursday, sustaining a rapid growth rate from the previous quarter, particularly in China. This performance underscores the robust demand for high-end luxury goods. The first-quarter growth exceeded expectations and notably outpaced its larger rival LVMH, indicating the resilience of businesses operating in the top end of the market, despite broader weakness in key markets such as China.
Sales for the three months ending March 31 reached 3.81 billion euros ($4.08 billion), surpassing expectations for a 13% rise, according to consensus provider Visible Alpha. As one of the most consistent performers in the luxury goods sector, Hermes has demonstrated its ability to maintain strong growth even amidst challenging economic conditions. However, despite the impressive performance, Hermes shares traded down 2.5% in late morning trading, as investors sought to capitalize on profits following an over 20% rise since the beginning of the year.