Hermès Reports 18% Sales Increase, Boosts China Market Hopes

Hermès reported a significant 18% increase in fourth-quarter sales, reaching approximately €3.96 billion ($4.14 billion), surpassing analyst expectations of a 10% rise. This growth highlights the brand's resilience amidst a broader luxury market downturn, where global luxury sales declined by around 2% due to economic pressures in China and inflation concerns elsewhere. The company’s success is largely attributed to strong demand for its high-end products, particularly in the leather goods and saddlery division, which saw a 21.5% increase in sales. Notably, Hermès experienced 9% growth in Asia, excluding Japan, despite ongoing challenges in the Chinese market. Executive chairman Axel Dumas acknowledged the positive sales momentum but cautioned against calling it a definitive turnaround for the luxury sector. Overall, Hermès remains a standout performer compared to rivals like LVMH and Kering, which are struggling with weaker demand.