The French luxury goods group Hermes continues to enjoy solid demand for its trademark printed silks and perfumes. It has announced a better than expected 12.1% rise in second quarter sales to 398 million euros.
It is further evidence that slower consumer spending in Europe and the US is not yet affecting demand for luxury items. Hermes sales were up 13% in Europe, 24% in North America and 22% in the Asia Pacific region.
Unlike other luxury groups, its shares have not declined this year. They are up 11% compared with a fall of nearly a third for Bulgari while Louis Vuitton, Moet Hennessy has seen its stock fall by a fifth.
Although Hermes is increasing revenue more quickly than its competitors, investors have also been buying the stock on the basis that it could be a takeover target. At the company’s annual general meeting last month, the family that controls nearly three quarters of Hermes said it was not for sale.