Some specific high-end brands seem to have defied the trend after L’Oreal shares dropped by 7% on Friday which continued to attract increasingly discerning shoppers.
Shares of Hermes were up 5.1% Friday after reporting a surge in sales as wealthy consumers continue to seek its exclusive Birkin handbags and silk scarves despite rising prices.
Fourth-quarter revenues rose 18% at constant exchange rates to 3.36 billion euros, while full-year revenues were up 21% to 13.42 billion euros. The company also announced plans for an exceptional dividend of 10 a euro share.
Speaking Friday, Executive Chairman Axel Dumas said product prices were likely to rise by an average of 8% to 9% in 2024, according to Bloomberg, which he said was indicative of the company’s continued appeal in an increasingly “polarized” market.
Hermes stock is currently up more than 13% for the year, ahead of LVMH, up 11%, and Burberry, down 8%.
