Hermes reports 9% sales rise from 8 % in 2024

PARIS, July 30 (Reuters) - Shares in French luxury group Hermes (HRMS.PA), opens new tab fell on Wednesday after it reported a rise of 9% in quarterly sales boosted by continued strong demand for its handbags, but showing some signs it is not totally immune to a wider luxury downturn.
Sales for the second quarter to the end of June reached 3.9 billion euros ($4.50 billion), up 9% at constant currency rates, Hermes said, broadly in line with analysts' expectations for a 10% rise.

The appeal of the brand's famous Birkin, Constance and Kelly bags so far has shielded the group from headwinds in the luxury sector, while growth at Hermes's smaller fashion and silk divisions slowed and perfume and beauty sales contracted.
Shares in Hermes, France's most valuable company by market capitalisation, fell by as much as 3.9% in early Paris trade.
Executive Chairman Axel Dumas said the group noticed weaker demand from first-time clients and so far does not plan further price hikes this year.
This year the group raised prices by 7% globally, with an additional 5% hike specifically in the United States, where the company flagged it would fully pass on the effects of tariffs to clients.
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These rises would probably suffice to offset the 15% tariff rate agreed between the Trump administration and the EU, Dumas said, although the company still awaited details of how exactly the charge would play out.
Hermes maintains tight control over production, raising it at a steady pace of about 6% to 7% per year, frustrating some shoppers who have to wait months for a handbag.
That strategy has helped the company buck an industry slowdown as big fashion labels like Chanel, Kering's (PRTP.PA), opens new tab Gucci and LVMH-owned Louis Vuitton and Dior grapple with declining sales.