Birkin bag demand sees Hermès profits soar to new heights: the luxury brand surpassed rivals LVMH and Cartier owner Richemont in the first half of 2023 with a sales jump thanks to the US and China

Aug 3 , 2023

Demand for the famous Hermès Birkin bag continues to rise in 2023. Photo: Handout

Hermès’ first-half earnings and sales growth beat analysts’ estimates this year, notably in the US and China, as demand for its bestsellers like the Birkin bag stay strong

Executive chairman Axel Dumas told reporters that he’s confident for the rest of 2023, with the news coming soon after the death of beloved actress and muse of the fashion house, Jane Birkin

Hermès’ sales and profit jumped as the maker of Birkin bags stood out from its luxury industry rivals with unabated demand for its high-end purses, notably in the US and China.

Shoppers line up to visit a Hermès store in Shanghai, China, in May 2022. Photo: AP

First-half earnings and sales growth beat analysts’ estimates. Revenue in the Americas gained 21 per cent in the second quarter at constant exchange rates, almost double what analysts expected. The stock rose as much as 4.3 per cent in Paris.

Jamie Chua in Paris with an Hermès Birkin bag. Photo: @ec24m/Instagram

Hermès is outperforming rivals LVMH Moët Hennessy Louis Vuitton SE and Cartier owner Richemont, which have reported weaker demand in the US after strong spending on luxury goods in the past two years.

Hermès Himalaya niloticus crocodile Kelly 25 Retourne. Photo: Sotheby’s

Demand has stayed strong in all regions in July, executive chairman Axel Dumas told reporters in a call Friday, adding he’s confident for the rest of the year.

“In difficult moments, there’s what we call in finance the flight to quality, so we’ve benefited from it,” Dumas said, adding, “I don’t want to jinx it.”

A model wears a creation as part of the Hermès autumn/winter 2023-24 ready-to-wear collection presented on March 4, in Paris. Photo: AP

Recurring operating profit advanced 28 per cent to €2.95 billion (US$3.24 billion) in the first half, and the margin reached a record 44 per cent.