Hermès International has defied luxury-sector jitters, posting a 9.4 percent rise in sales in the third quarter, lifted by a strong performance in Asia.
Referring to “very strong growth” over the year so far in all regions, Hermès CEO Axel Dumas offered a measured assessment of the group’s expectations.
“We keep our optimism for the future, but we are also thankful for the past,” the executive said in a statement.
Sales at the luxury house, known for its Birkin bags and signature silk scarves, totaled 1.46 billion euros ($1.68 billion), up 9.6 percent at constant exchange rates. The fastest growth came from Asia, excluding Japan, up 11.8 percent to 519 million euros. Hermès launched its e-commerce site in China last month.
Shares in luxury-goods companies across Europe took a tumble recently on fears that consumption in China could falter as a trade war shapes up across the Pacific, and financial markets are keeping an eye out for any sign of disruption in that market, the sector’s main growth engine.
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Sales in Europe were up 5.6 percent at constant rates, while the Americas region clocked growth of 14 percent.
Leather goods, ready-to-wear and accessories led growth with an increase of 11.7 percent at constant rates, while the perfume division, along with silk and textiles, showed declines, down 0.9 percent and 1.6 percent, respectively.
“All in all, another solid quarter from Hermès, with a particularly reassuring performance in the most profitable leather division, which incidentally will be lapping a relatively easy comparative in [the fourth quarter],” said analyst Rogerio Fujimori of RBC Europe in a research note to clients.
This story was reported by WWD and originally appeared on WWD.com.