Hermès Hurdles Over Luxury Market Slump, Flaunts Strong Q3 Sales — Retail Bum

Hermès seems to be bucking the ongoing downturn in luxury spending, with the French luxury brand reporting increased sales in the U.S. and other global markets.

For the quarter that ended September 2023, the brand saw sales rise to $3.6 billion, marking a 15.6% improvement at constant exchange rates. In the U.S., sales increased by 20%, thanks to high demand on both coasts and at the brand’s newly opened New York flagship store. Meanwhile, sales improved by 18.1% in Europe as the continent continued to draw high volumes of tourists throughout the quarter.

And in China, the soon-to-be largest luxury market in the world, foot traffic at Hermès stores remained strong, helping the brand’s business bounce back in the months of July and August.

The brand registered a growth in sales across the glove even though it has raised its prices by roughly 7% this year to make up for high production costs. Japan, in particular, saw a double-digit price increase due to current fluctuations; on the opposite end of the spectrum, the U.S. saw a mere 3% increase.

“Despite an uncertain context, our outlook remains unchanged,” said Eric du Halgouet, Hermès executive vice-president of finance.