Positive news continues from the world of haute couture, fashion and luxury goods, which in recent days have strongly spurred the overall index of the Paris stock exchange and the overall European Stoxx 600. The latest good news concerns the handbag and other luxury goods company Hermes, which announced that the rich Chinese customers are buying its products in the fourth quarter of 2022, even as the rest of the luxury goods sector has been hit by an increase in coronavirus cases. And it helped the group beat analysts’ forecasts for sales as well as earnings. In addition, Hermes, especially known for its Birkin bags, noted that during the Chinese New Year in January, there was a lot of buying interest in these products. This was stated by its managing director Axel Dimas, adding that the company looks to 2023 with confidence.

The company cited rising labor costs as the reason behind recent price increases of around 7% in January and 4% in 2022. the exclusivity of their brands, while Hermes made minor adjustments.

A buoyant business in the United States, where Hermes opened a large store on New York’s Madison Avenue a few months ago, has helped boost sales. Luxury and fashion brands in the Old Continent have particularly benefited from the strong post-pandemic recovery, as consumers have used their lockdown savings to indulge in the creations of famous designers.

Global sales in October-December 2022 reached 2.99 billion euros.

However, much of the industry in China has been hit by a spike in coronavirus cases late last year. However, interest in Hermes did not fade away. “We have seen things move very quickly in the country, with double-digit sales growth, including the fourth quarter,” Axel Dumas said without giving details. Globally, October-December 2022 sales rose sharply by 22.9% to €2.99 billion, beating analysts’ expectations of 17% growth at a constant pace, according to Visible Alpha’s consensus estimate.

In the United States, sales rose 40.8% in the latest quarter, in contrast to other companies in the industry that moved operations to Europe. Finally, Hermes said it will offer a €13 per share dividend at its next general meeting on April 20 and pay a €4,000 bonus to all of its employees this year.