Hermès Fashion House, the creator of the famous Birkin bags, which sell for more than $10,000 apiece, announced that it will raise its prices.
More specifically, according to Reuters, the exclusive accessories sold by Hermes will be 5%-10% more expensive in 2023. This is a higher increase than in recent years and comes at a moment when the luxury group's sales rose above expectations in the third quarter.
Like its rival LVMH, owner of the Louis Vuitton brand, the Hermès Fashion House has denied fears that the post-pandemic luxury industry boom could end because of a possible recession, as US buyers took advantage of the strengthening dollar in Europe and the Chinese market rebounded strongly.
"We will probably increase prices by 5% to 10%," Hermes' vice president of finance Eric du Halgouet said Thursday, adding that the increase is due to rising labor costs and currency fluctuations.
Hermes has already raised prices by about 4% this year and by an average of 1.5%-2% in previous years.
Hermes reported July-September sales of 3.14 billion euros, up 24.3% at constant exchange rates and double the 12% increase forecast by UBS analysts.
The Legendary Hermès Fashion House
The authority of the Hermès Fashion House is unshakable, it is an ultra-luxury success story. It guarantees its wealthy customers accessories of the highest quality and refinement.
The famous French brand is synonymous with luxury and perfection. The company’s philosophy can be summarized by a single quote from former CEO Jean-Louis Dumas – "We don’t have a policy of image, we have a policy of product."
Hermès has a strong commitment to constantly manufacturing products that are unique and have a strong sense of allure. The fashion house has a superior position in the ultra-luxury segment of the market and keeps the power of its family brand as an icon of legacy, authenticity, and prestige.