There’s no question Hermès bags and other goods remain popular, must-have items. And apparently the Paris protests did not severely damper the bottom line as it did tourist and shopper spirits. It was another strong sales quarter for Hermès, as the luxury house just reported results for the fourth quarter of 2018. Annual results are due at the end of March.
How Did Hermès Do?
From geographical standpoint, sales growth in Asia (not including Japan) climbed at the greatest rate – a 14% rise. Hermes attributes that success in part to new, expanded and renovated stores. Growth in the Americas followed at a 12% pace; with Europe (excluding France) at 8% and France at 6%. The report noted that Hermès considered the French results “sound” particularly in light of the difficulties (aka yellow jacket strikes) that caused closings, violence and turmoil in Paris during the holiday season.
Hermès business was booming for its “other” lines which include Jewelry and Table Arts with sales growth of 20%. Ready-to-wear and accessories rose a “remarkable” (according to Hermès) 14% for the same time period.
The leather goods division continued its success with 9% growth, for which Hermès credits, among other things, its increase in production capacity, that is the new facilities In this regard, Hermès also recently announced that it was building another new leather production site in Normandy, France.
What Do We Want?
Interestingly, Hermès says that the increased number of production facilities were necessary “to meet the high demand, both for the re-invented classics and other models such as the Mosaique and 24/24 bags”. Naturally, that led us to wonder – are you/we buying the Mosaique and 24/24 bags? Or are we all really still focused on the Birkin/Kelly/Constance trifecta.
Frankly, from our IG accounts, DMs, BopTalk and every other way the PurseBop community gathers, we want Birkins, Kellys and Constances and the variations are in size, leather and hardware. But we want to hear from you for sure: what bags are driving you to buy more from Hermès.