Hermes sales soar as shoppers move to luxury shopping
Sales are better than expected over at the uber-luxury house of Hermes.
It’s a case of pandemic recession, what pandemic recession over at Hermes as sales rose by 16% in the fourth quarter of late last year, a rise that is almost twice what was expected by top analysists globally.
While the French fashion house has everything you could possibly need, the main reason behind the rise was listed as the leather goods unit, home to the famous Kelly and Birkin bags. As a result, shares rose by 8.9% to a record high.
But Hermes aren’t the only fashion house reporting better-than-expected sales with Louis Vuitton and Dior also faring well.
Not feeling the love is Gucci, whose sales, once at record-beating highs, declined last quarter with analysists suggesting the reason being due to their lack of a strong customer base in European countries and an over-reliance on Chinese tourists who have helped drive the growth at Gucci over the past few years.
With China often seen as the large driver of designer spending, Hermes reported fourth-quarter revenue up by 39% in Asia but a decline of 9.7% in Asia.
“Hermes confirmed its superiority to peers in 2020 with the reduction in tourist flows more than offset by a loyal customer base,” Deborah Aitken, analyst at Bloomberg Intelligence noted.
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