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.
One facility, which will be located in Charente, in the municipality of L’Isle-d’Espagnac, will open in 2025, while the other will be in Gironde, in the municipality of Loupes, and will open in 2026.
The new workshops in Gironde and Charente will create about 500 new jobs, the luxury goods company said in a statement Tuesday. Three other leather new goods sites from Hermès are currently under construction in Tournes, Cliron and Riom.
Hermès is ramping up its leather goods production in response to consumer demand, although the company limits the growth of its leather goods. Hermès sales growth dipped last quarter, as its self-imposed production limitations kept the company from hitting industry forecasts.
”Contrary to what people may think, we’re always very sad when we have to say to our customers, ‘no’, because we don’t have [enough bags],” executive chairman Axel Dumas told reporters last month.
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Tracking the Evolution of Hermès
Hermès’ timeless positioning has helped sales bounce back ‘as if the pandemic never happened.’ That doesn’t mean change isn’t afoot at the iconic French luxury house.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.