Hermès Beats Expectations with 16% Sales Growth in Q3 Despite Global Luxury Market Slowdown

Hermès' Q3 growth driven by strong sales in Asia, Americas and robust demand for ready-to-wear and accessories, defying downturn in luxury industry as rivals falter.

• Hermès reported nearly 16% sales growth in Q3 2023, amounting to almost 3.4 billion euros ($3.6 billion), defying the slowdown in the global luxury market.
• The company's strong performance was attributed to robust demand in Asia and the Americas, notably the high sales in the US, China, and other regions like Singapore, Thailand, Australia, and Korea.
• Hermès saw the biggest year-to-date increase in its ready-to-wear and accessories sector (such as belts, hats, and shoes), with a growth rate of up to 29% at constant exchange rates.
• Sales growth was also bolstered by the successful opening of new stores in prominent locations such as Madison Avenue, New York, and Los Angeles, with an upcoming store launch in Tianjin, China.
• Despite a global economic slowdown and price hikes due to rising production costs, Hermès was able to sustain strong growth with its unique business model, balanced distribution network, and high-quality products, including the much-coveted Birkin bags.

3 Articles

The Messenger Reuters WWD