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The post-lockdown luxury boom may be coming to an end, but consumer demand for Kelly handbags shows no signs of faltering. French luxury house Hermès posted sales were up 16 per cent at constant exchange rates to €3.37 billion in the third quarter, above consensus expectations of 13 per cent.
Leather goods and saddlery were up 16 per cent, ahead of consensus. Ready-to-wear and accessories rose by 18 per cent, watches by 22 per cent, perfume and beauty by 6 per cent and Other business lines (including jewellery and homeware) by 17 per cent.
Growth was led by Europe (up 18 per cent), Americas (20 per cent), Japan (24 per cent) while Asia Pacific excluding Japan was up 10 per cent. Hermès shares rose by 2.3 per cent in early morning trading on Tuesday.
“These trends notably contrast with the rest of the sector that is mostly seeing negative growth in the Americas and a significant slowdown in Europe,” analysts at Barclays commented.
“It confirms our idea that higher exposure to quality names is the most appropriate course of action for investors in a moderating market where the sector has corrected,” said Luca Solca, senior analyst at consultancy Bernstein.
Hermès has outperformed its competitors. LVMH reported sales growth of 9 per cent last week, missing consensus by 1 per cent, sending its shares down 7 per cent. Ferragamo sales fell by 9 per cent in the first nine months of the year.
“The solid performance in the third quarter reflects the desirability of our collections all over the world, with still a sustained momentum in Asia and in the Americas,” Hermès executive chairman Axel Dumas said in a statement. “More than ever, in an uncertain global environment, we are reinforcing our investments and our teams to support growth.”
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