What cost of living crisis? Luxury handbag maker Hermes sees a jump in sales as super-rich shoppers continue to spend on high-end fashion
Hermes, the maker of the luxury Birkin and Kelly handbags, has seen a jump in sales as super-rich shoppers continue to spend on high-end fashion despite the cost of living crisis.
The French retailer said sales in the first three months of the year were 23 per cent higher than in the same period of 2022.
Wealthy shoppers bought accessories such as colourful scarves and the expensive leather Birkin bags.
Several factors affect the price of the must-have Birkin bags, including size, colour, material and condition, according to a guide published by the Sotheby’s auction house last year.
A Birkin bag bought directly from the store starts at $9,000 (£7,249) and can sell for $30,000 (£24,165) according to Sotheby’s guide.
The French retailer said sales in the first three months of the year were 23 per cent higher than in the same period of 2022 as luxury shoppers splash out (file image of Birkin bag)
Despite a cost of living crisis, luxury firms have reaped the rewards of big-spenders continuing to splurge. A new workshop opened in Normandy, France, last week (pictured)
Last year, a 2021 Himalayan Birkin 30 with diamonds sold at Sotheby’s for $450,000 (£362,479).
Hermes sales in China were nudged up by shopping during the Lunar New Year and the lifting of Covid curbs in the region at the start of the year.
Executive chairman Axel Dumas said the sales leap was ‘driven by the loyalty of our customers’, who forked out on watches and classic leather bags.
Sales hit the equivalent of £2.9billion for the quarter.
Booming interest in pricey leather bags has led the company to open a slew of new ‘artisan’ factories to keep up with demand.
A factory in Normandy opened just last week, where workers usually spend between 14 and 20 hours making one Kelly handbag.
The iconic bag was renamed after Hollywood actress Grace Kelly used the accessory to conceal her pregnancy in the 1950s.
Another signature product, the Birkin handbag, pictured, was named after an encounter in the 1980s between then Hermes boss Jean-Louis Dumas and the actress Jane Birkin on a flight.
Despite a cost of living crisis, luxury firms have reaped the rewards of big-spenders continuing to splurge.
Hermes’ bumper figures came just days after rival LVMH – whose brands include Christian Dior and Dom Perignon – reported a 17 per cent rise in sales.
Family-owned French designer Hermes started out in 1837 as a harness and saddle maker.
The brand’s infamous silk scarves, beloved by the late Queen Elizabeth II, former first lady of the US Jacqueline Kennedy Onassis and fashion icon Audrey Hepburn, were created in 1937.
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