Hermes Q3 Sales Rise 11.3 Percent

French luxury brand Hermes reported a robust 11.3% year-on-year increase in third-quarter sales, reaching €3.7 billion ($3.99 billion), surpassing analyst expectations amid a broader downturn in the luxury market. Executive Chairman Axel Dumas credited the brand's strong performance to its unique business model, careful recruitment, and strategic long-term investments, despite challenges from economic and geopolitical uncertainties. In contrast, major competitors like LVMH and Kering have struggled, with LVMH missing sales targets and Kering warning of a potential 50% drop in operating income for 2024 due to declining consumer confidence in China. Hermes' timeless designs and strict inventory management have maintained its exclusivity, attracting high-end consumers, although there are signs of reduced interest from aspirational buyers. Year-to-date, Hermes shares have climbed nearly 9%, significantly outperforming rivals like LVMH, which has seen a nearly 15% decline, and Kering, which has fallen by 40%. Hermes’ resilience highlights the enduring appeal of luxury brands that prioritize exclusivity and strategic foresight.