The producer of Birkin bag, Hermes (HRMS.PA), has announced plans to increase prices this year following a 17.5% surge in sales during the fourth quarter of 2023, highlighting the enduring demand from high-end shoppers amid economic challenges.
The executive chairman of Hermes, Axel Dumas disclosed this to reporters on Friday, February 9, noting that the company plans to lift prices by between 8% and 9% this year globally.
Sales for the three months to the end of September totalled 3.36 billion euros ($3.62 billion), up 17.5% at constant foreign exchange rates. That was ahead of expectations for 14% growth, according to Visible Alpha consensus estimates.
Handbags like the coveted $10,000 plus Birkin model are affordable only for the wealthiest shoppers who are typically the more immune to choppy economic conditions.
According to report Hermes will pay a 4,000 euro bonus to each of its over 22,000 employees worldwide, the company said.
