Hermes sales jumped as wealthy shoppers in the US and Europe splurged on the French company’s pricey Birkin and Kelly handbags.
Revenue rose 15.6% at constant exchange rates in the third quarter, Hermes International said in a statement Tuesday. Analysts had expected a gain of 13.2%. The company posted 20.4% growth in the Americas, beating estimates, while its performance in Asia Pacific excluding Japan was in line.
Hermes shares have outperformed other luxury stocks this year as the French brand benefited from resilient demand even as growth across much of the industry slowed. Hermes’ limited production capacity creates a backlog of orders for its prized bags and greater pricing power.
Luxury group LVMH — whose brands include Louis Vuitton and Christian Dior — reported disappointing quarterly sales earlier this month as shoppers reined in spending on high-end Cognac and costly handbags. Gucci owner Kering SA will report sales figures later on Tuesday in Paris.
