Global Sales Of Birkin Bag Maker Hermes Up 23%

Sales at Birkin bag maker Hermes rose 23% in the first quarter, beating expectations as wealthy shoppers in China and Europe splurged on luxury fashion and accessories despite higher prices and global market turmoil, Mimosa Spencer reported for Reuters.

Photo Insert: Hermes has shown a superior ability to plow through adverse demand trends, leveraging its high brand desirability and waiting lists for iconic products.

Hermes finance chief Eric du Halgouet told journalists that store traffic in the US, where rival LVMH earlier this week flagged softer demand for fashion, leather goods, and jewelry, continued to rise.

"What we're seeing in the US is globally an increase in (store) traffic, the trends we've seen in April remain favorable, with, again, very dynamic traffic," he said.

"We obviously remain vigilant as far as macro trends are concerned ... but we have not seen a slowdown so far."

Bernstein analyst Luca Solca said strong US growth for the group, which posted a 19% increase in sales compared to 8% US growth for LVMH, was noteworthy. "It confirms Hermes's superior ability to plow through adverse demand trends, leveraging its high brand desirability and waiting lists for iconic products," he said.

As part of its strategy of increasing production at around 7% per year, Hermes last week opened a new site in Normandy that makes Kelly handbags -- a model designed in the 1920s that became associated with actress Grace Kelly in the 1950s.

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