Luxury clothing is still in demand in times of high prices
Sellers of exclusive clothing and accessories are still doing well, despite rising inflation and fears of a recession. Quarterly figures from French fashion house Hermès showed on Thursday that wealthy consumers still have plenty of money left over to buy luxury fashion items. Earlier this month, the parent company of Louis Vuitton and Christian Dior had already announced a sharp increase in its sales.
Hermès, better known as Kelly and Birkin handbags, had a turnover of 3.1 billion euros in July, August and September. This is about a quarter more than the same period last year.
It was partly because international tourism is picking up after two years of coronavirus restrictions. Wealthy American tourists in Europe constitute an important target group for Hermes and her peers. In the summer months, they would rummage in their pockets for fashion items. Additionally, sales in China have recovered, despite ongoing lockdowns that have largely shut down public life in major cities.
Despite the economic uncertainty, the company is also not changing its growth ambitions in the coming years. Next year, Chief Financial Officer Eric de Hallguet said Hermes plans to raise its prices by 5-10 percent. The company did not release quarterly earnings figures.
LVMH, the maker of handbags for Louis Vuitton, Christian Dior Fashion and Dom Pérignon Champagne, reported last week that sales increased by about a fifth. A strong dollar also plays a role in the good sales to American tourists. So travelers from the US are cheaper when they go shopping in Europe.
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