Birkin handbag maker Hermes bucks trend with profit increase

Birkin bag maker Hermes has survived the slump in demand for luxury products and seen sales rise.

The French company’s revenue in the second quarter was £3.1 billion, up 13 percent from a year earlier.

Sales were good everywhere except Asia.

The brand’s results tend to be less variable than other luxury brands, as it has strong price power and long waiting lists for sought-after products such as its Kelly and Birkin handbags, which start at £10,000.

Luxury goods sales have largely normalized after the post-pandemic boom, with LVMH’s results falling short of expectations.

Gucci owner Kering expects profits to fall further in the second half of the year, while Cartier owner Richemont is suffering from continued weak demand in China.