Hermès sales rise as US shoppers splurge on its pricey Birkins

Hermès sales grew as the Birkin bag maker continued to attract wealthy shoppers — especially in the U.S. — willing to splurge on its coveted products. Third-quarter revenue at constant exchange rates rose 9.6%, Hermès International said in a statement Wednesday. Analysts had expected a gain of 9.3%. The key leather goods and saddlery unit, the company’s main profit engine, slightly missed estimates. Alleviating concerns that the Trump administration’s tariffs would hit consumption, the region that includes the U.S. outperformed expectations as revenue there rose 14.1% in the quarter. Hermès remains among the most resilient luxury brands, growing sales despite a global cooling of demand for high-end goods and tariff worries. Its managed-scarcity-driven model has spared it from the spending vagaries of aspirational customers who’ve cut back since the early post-pandemic boom years. The company’s continued robust performance reinforces optimism that the slump in luxury demand is easing, coming after its rival LVMH Moët Hennessy Louis Vuitton posted reassuring sales last week, pleasing investors and sending its shares higher. Hermès hasn’t seen a change in trends so far in the current quarter, Chief Financial Officer Eric du Halgouet told reporters on a call. The strong growth in the U.S. was across categories, with a steady progression in visits to its stores, the executive said, adding that Hermès didn’t hike prices again in the country following its one-time increase in May to counter the effect of tariffs. Hermès shares have fallen 3.1% so far this year, a similar performance to LVMH. By Angelina Rascouet

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Hermès sales rise as US shoppers splurge on its pricey Birkins