The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French luxury-handbag maker Hermès International SCA added to the industry's recent woes, saying sales growth this year may miss its medium-term target.
Revenue could rise by less than the company’s goal of 8 percent at constant exchange rates, Hermès said in a statement Wednesday, citing “economic, geopolitical and monetary uncertainties around the world.”
Recent earnings reports from the industry have been glum, with Richemont's Christmas season sales dropping for the first time in seven years and Swatch Group AG's 2015 profit missing estimates. One of the exceptions has been LVMH, whose fourth- quarter sales exceeded estimates on demand for Louis Vuitton bags in Japan and Europe.
Hermès also reported its slowest sales growth in six years as November’s Paris terrorist attacks led to a drop in tourist spending. Revenue climbed 7.2 percent on that basis.
By Thomas Mulier and Paul Jarvis; editors: Matthew Boyle and Paul Jarvis.
Hermès’ elusive sales strategy is at the centre of a new legal challenge for the French luxury giant. BoF breaks down the practices under scrutiny and what the suit could mean for the fashion industry at large.
A sharp drop in the label’s Asia-Pacific sales is the latest sign that Chinese luxury demand is cooling.
This week, Kering flagged sales were down 20 percent at its flagship brand, knocking confidence in the group’s turnaround strategy. ‘A more drastic solution is required,’ one analyst wrote.
A new creative configuration will be announced soon, the Roman couture house said.