French luxury group Hermès showed resilience amid a slowdown in the luxury sector, carried by high demand for its coveted handbags and strong growth in ready-to-wear fashion.
Sales in the fourth quarter grew 13 per cent to €3.36bn, ahead of forecasts from UBS and following double-digit growth in its biggest markets in North America and Asia the same time last year.
Annual sales reached €13.43bn in 2023, up 16 per cent at current exchange rates compared to 2022, while net profit hit €4.31bn, up 28 per cent.
Hermès’ performance reinforced the trend that stronger groups with upscale positioning in the sector, including LVMH, are achieving a soft landing with resilient growth, compared with groups that have a more aspirational clientele, such as Burberry and Kering, which have struggled.