Hermes sales growth

Hermès reported a 13% increase in second-quarter sales, reaching €3.7 billion ($4.02 billion), reflecting strong demand for its luxury handbags despite a broader decline in luxury spending among less affluent consumers. The French brand's performance contrasts sharply with rivals like Kering and LVMH, which have experienced significant downturns, particularly due to challenges in the Chinese market. CEO Axel Dumas emphasized that Hermès' business model, characterized by exclusivity and controlled production, has shielded it from the sector's volatility. While sales in Asia, except Japan, have been stable, there is a slight decline in demand for fashion accessories among aspirational buyers. The brand's growth is primarily driven by its iconic leather goods, which saw a 17.9% increase, while the silk and textiles division faced a 5.6% drop. Hermès remains optimistic, continuing to invest in its operations amidst a challenging economic landscape.