French luxury brand Hermès has reported a continued increase in sales for the third quarter, indicating strong resilience in the high-end luxury market, even as consumers cut back on spending in other areas.
For the three months ending September, Hermès recorded revenues of €3.88 billion (approximately $4.5 billion), reflecting a year-on-year growth of 9.6% at constant exchange rates, slightly up from 9% in the second quarter. Analysts at Visible Alpha had predicted revenues of €3.9 billion, with the actual results coming in slightly lower but still robust.
This report follows the positive sales data released by LVMH last week, further boosting market confidence in the recovery of the luxury sector. Prior to this, demand for high-end fashion and accessories had experienced prolonged weakness.
In its statement, Hermès reaffirmed its unchanged medium-term growth targets while highlighting that “uncertainties in the global economy, geopolitical situations, and monetary conditions persist.”
Analysts suggest that while some mid-range brands remain under pressure, the "resilience" and "scarcity value" of the ultra-luxury market are driving a new wave of recovery in the industry.
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