French luxury brand Hermes (HESAY, Financial) reported third-quarter sales of 3.7 billion euros, marking an 11.3% year-on-year growth at constant exchange rates, outpacing its competitors. Executive Chairman Axel Dumas praised the strong performance of the team and the loyalty of their customers amidst uncertain economic and geopolitical conditions. He emphasized Hermes' continued recruitment and long-term investment due to its unique business model.
In contrast, the luxury sector as a whole is experiencing a slowdown affecting various high-end brands. Last week, LVMH reported results that fell short of expectations. Kering also issued a warning that its operating profit for 2024 could drop by nearly half to the lowest levels in years. Hermes' renowned classic designs and meticulous production and inventory management have helped maintain its exclusivity and status as one of the industry's most stable performers.
Year-to-date, Hermes shares have risen nearly 9%, while LVMH has decreased by almost 15%, Moncler has dropped 3.3%, and Kering has fallen a staggering 40%.
