Hermes adds another bounce to the luxury goods rebound
Luxury goods took a beating when terrorism kept tourism at bay, but things are starting to look up for top-end silk and scarves
Zurich — Hermes International added to evidence that the luxury industry is recovering as shoppers in China and Japan buy more silk scarves and Birkin handbags as tourists, who were deterred by terrorism, return to its stores in Europe. Revenue climbed to €1.5bn ($1.6bn) in the fourth quarter, the Paris-based company said on Wednesday, meeting analyst expectations. "I see an improvement in China and much higher appetite for our industry generally since the second half," CEO Axel Dumas said. "I remain optimistic for China. We see a lot of appetite for a diverse range of our products, from shoes to ready-to-wear bags and silk." Hermes joins other luxury-goods companies in reporting improvements after the industry suffered several years of ebbing demand in China and a slowdown in tourism in Europe after terrorist attacks. Christmas-season sales and earnings at Louis Vuitton-owner LVMH beat analyst estimates, while British trenchcoat maker Burberry said business in the Asia-Pacific regi...
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