- Don-Alvin Adegeest |
The luxury industry has been seeing challenging times since China and the rest of the Asia-Pacific region has experienced slower growth. But both Hermès and Burberry have issued financial results that have beaten analysts' expectations. Third-quarter sales at Hermes rose by 7.9 percent on a like-for-like basis, ahead of forecasts, helped by demand for leather goods and ready-to-wear fashion. Meanwhile, UK luxury brand Burberry reported a better-than-expected 3 percent rise in first-half underlying profit.
At Hermès, Asia-Pacific growth, excluding Japan, dwindled to 1.5 percent amid "a difficult context in Hong Kong, Macao and to a lesser extent in continental China".
In October, Burberry had also warned of an increasingly challenging environment for luxury goods in China and Hong Kong.
And last month, LVMH, the world's biggest luxury group, said the summer stock market collapse in China had hit sales, particularly at its flagship Louis Vuitton brand.
It will be interesting to see how sales in the final quarter will measure up to both shareholders analysts' expectations.