(Updated with details, context, stock price)
PARIS, October 24 (Reuters) – Hermès reported on Tuesday organic growth in its turnover slowing in the third quarter but higher than expectations, the luxury group maintaining its ability to withstand the headwinds currently weighing on its competitors.
Sales at constant exchange rates increased by 15.6% in the third quarter, to 3.13 billion euros, where the Visible Alpha consensus expected an increase of 14%.
They are progressing in all regions of the world, particularly in the United States.
On the Paris Stock Exchange, Hermès shares gained 2.5% to 1,724.60 euros in early trading.
Analysts have lowered their estimates for the luxury sector in recent weeks, following the disappointing quarterly publication of
LVMH
earlier this month, which showed consumers were spending less on high-end fashion due to inflation and the uncertain environment.
But Hermès, which targets consumers who can afford handbags such as the coveted Birkin model for more than $10,000, has a reputation for weathering economic turbulence better than its competitors.
“Despite an uncertain context, our outlook remains unchanged,” said Eric du Halgouet, executive vice-president in charge of finance, during a conference call with journalists.
It reported strong growth in the United States and Asia, including China.
In the Americas region, sales increased by 20.4%, despite lower price increases than in other parts of the world, Hermès highlighted, highlighting the strong contribution of the Madison Avenue store in New York, which opened a year ago.
Hermès has raised prices globally by around 7% this year to account for rising production costs, with the exception of the United States, where increases were around 3%, and Japan, where they were higher, in double digits, due to exchange rate effects.
(Reporting by Mimosa Spencer, Blandine Hénault for the French version, edited by Bertrand Boucey and Kate Entringer)
©2023 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.