Hermes sales jumped as the Birkin maker continued to see resilient demand for its high-end handbags, notably in the US and China.
Revenue rose 28% in the second quarter at constant exchange rates, Hermes International said Friday. Analysts expected a gain of 24%.
The Americas grew 21% over the period, nearly double the rate analysts were expecting. Hermes is doing well there even as rivals like LVMH Moet Hennessy Louis Vuitton SE and Richemont have reported weaker demand in the US after strong spending in luxury goods in the past two years. The region that includes China also grew by a more than a third.
Analysts consider Hermes to be in a category of its own as far as pricing power is concerned as demand for its handbags consistently surpasses its capacity to produce them. That means many bags enjoy higher resale values.
The Kelly bag maker aims to open one new leather manufacturing facility per year in France in order to maintain a growth of around 7% for its leather goods.
Read more: Hermes Boosts Kelly Bag Output With New Normandy Facility
Shares in Hermes have outperformed its luxury rivals, jumping by around a third this year. The company saw its market capitalization cross the symbolic €200 billion ($221 billion) threshold earlier this year.
Read more: At €200 Billion, Hermes Surfs Luxury Boom to Surpass Novartis
Recurring operating income advanced to €2.95 billion in the first half. Analysts expected €2.8 billion.
