Loyalty, quiet luxury and a multi-local mix helped Hermès International gallop ahead of the pack with a sales jump of 28 percent at constant currency against the backdrop of a U.S. slowdown for luxury.
“People were somewhat anxious…and Hermès is recognized for its quality regardless of other people’s price positioning,” Dumas added.
LVMH Moët Hennessy Louis Vuitton said sales were down 1 percent in the U.S. in the same period, from an 8 percent increase at the beginning of the year. The Louis Vuitton, Loewe, Dior, Givenchy and Fendi parent company said sales drops of entry level products and a slowdown in second-tier cities “were a clear sign” that aspirational customers were changing their shopping habits.
He added that the growth of the middle class and shifting demographics in Asia and the U.S. are driving sales. Considering the pent up demand, it’s likely the market would absorb even more, giving them even more wiggle room on pricing in the face of any potential slowdown, though Dumas indicated it is not in the cards for the second half of the year.
The jewelry and homewares category was up 36.1 percent at constant exchange in Q2; ready-to-wear up 35.1 percent, and silks including its iconic scarves, which sell well at travel points, up 25.8 percent.
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