Hermes overtakes L’Oreal as gross sales of Birkin baggage rocket
Fan: Birkin baggage are a favorite of celebrities equivalent to Victoria Beckham (pictured)
Hermes has overtaken L’Oreal for the primary time to turn into the second most-valuable firm in France.
On a day of blended fortunes for the 2 Gallic giants, the Birkin bag maker’s shares rose 4.8 per cent to a report excessive on the inventory market in Paris. L’Oreal fell 7.6 per cent.
That left Hermes valued at £196billion whereas L’Oreal is value £192billion. Both lag behind Louis Vuitton and Chanel proprietor LVMH, which has a price of £345billion.
The share value swings got here after Hermes revealed gross sales within the three months to the tip of December hit £2.9billion – up 17.5 per cent on the identical interval a yr earlier.
It got here amid booming demand for Hermes merchandise together with the Birkin bag which might price £70,000. By distinction, L’Oreal, the world’s largest magnificence agency, mentioned gross sales rose by simply 2.8 per cent within the ultimate quarter of 2023 to £9billion.
The agency cited ‘a difficult atmosphere of geopolitical tensions, inflationary pressures, and a stagnating magnificence market in China’. As buyers gave a response that was as swift because it was brutal, analysts at funding financial institution JP Morgan mentioned: ‘Hermes is taking part in in a unique league.’
Hermes mentioned it noticed ‘stable momentum’ throughout its enterprise in 2023 because it bucked the downbeat pattern felt by different trend corporations. The firm’s Birkin baggage are a favorite of celebrities equivalent to Victoria Beckham.
British actress Jane Birkin, who died aged 76 final yr, impressed its signature leather-based bag after complaining to Hermes’ then boss Jean-Louis Dumas in 1981 that she wanted an even bigger bag for travelling as she sat subsequent to him on a aircraft.
Hermes will hike its costs between 8 per cent and 9 per cent this yr because it doesn’t count on its rich prospects to be deterred by the will increase.