Hermes thanks Chinese shoppers for sales jump

Luxury goods group Hermès, owner of the iconic Birkin handbag, has shrugged off concerns about the Chinese economy to post a jump in third-quarter sales.

The world’s second-largest economy has led global demand for luxury goods in recent years, as its rampant growth underpinned strong consumer demand. Chinese shoppers now account for around a third of all luxury goods sales.

But there are signs that the powerhouse economy is starting to slow, with the increasingly bitter US-China war trade compounding concerns.

However, on Wednesday, Paris-based Hermès said revenues were ahead 9.6% at €1.46bn for the three months to 30 September, while sales in Asia excluding Japan – its biggest market – were up 11.7% at constant exchange rates, at €519m.

Chinese consumers snapping up luxury goods while overseas also helped support group sales.

In a statement, Hermès said: “In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.”

Addressing China specifically, executive chairman Axel Dumas told reporters that the company “did not see any change of pace at this stage”, and said that while Hermes talked about the country internally, “we don’t really understand exactly why we’re talking about it”.

Shares in Hermès were flat at €501, while in London, listed rival Burberry – which publishes interim figures on Thursday – saw its shares nudge 1% higher, at 1,809p by 1.30pm GMT.