Hermès scores best result
23/07/2008
In the round of reporting second-quarter results among Paris--based luxury brands, Hermès looks to have come out best.
The company reported sales growth of 12.1% compared to the second quarter of 2007. But for the strong euro and weak dollar, the figure would have considerably higher, 17.9%. Sales for the quarter were EUR 398.1 million.
Commentators have said Hermès’s success hinges on its commitment to its roots. While rival brands have sought to expand their customer-base by offering cheaper bags and leathergoods, Hermès bags are produced in limited edition and start at a price-point of around $5,000.
Forbes quoted Lucian James, president of Agenda Inc, a brand strategy firm in Paris and San Francisco, as saying: “What’s really interesting about Hermès is that they have not followed the typical luxury model. When other luxury brands were reaching to a slightly bigger mass market, Hermès made a very specific decision not to do that.”
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