Why Hermes is outperforming its luxury rivals

Hermès’ latest earnings reveal a 12 per cent organic revenue increase in its leather goods division for the first half of the year, driven by continued demand for its flagship Kelly and Birkin bags. While competitors trim forecasts and shuffle creative leads, Hermès stands as a consistent and quiet counterpoint.

Unlike other luxury peers scrambling for growth via celebrity campaigns or outlet channels, Hermès has always played a slower, subtler game. The brand’s refusal to chase volume growth, and its near-religious adherence to scarcity and craft. has only burnished its aura in the eyes of high-net-worth consumers who increasingly crave meaning over noise.

There are no splashy sales, just careful store openings, measured product releases, and waiting lists, says analysts at Third Bridge. In today’s luxury climate, that restraint is proving to be an asset.

In China, where the broader luxury slowdown has caught many by surprise, Hermès has managed to sidestep the fatigue. Rather than saturating Tier 1 cities or rushing to capture the latest “revenge spending” trend, the brand has stayed focused, investing only where it sees long-term resonance and cultural fit. Store productivity remains high, and brand desirability has not waned, even as others falter under the weight of overexposure.

Perhaps what’s most remarkable about Hermès right now is what it hasn’t done. While rivals at Kering and LVMH reshuffle executive suites and rotate creative directors in a bid to rediscover their edge, Hermès is opting for stability. Analysts at Third Bridge suggest this continuity at the top, both operationally and creatively, will allow the house to navigate market turbulence with far more clarity than its peers.

The company’s disciplined focus on high-quality execution and relationship-building with existing clients is giving it room to grow, even in a slow-growth market. It’s less about acquiring new customers, more about deepening loyalty, and in the luxury game, that can be the difference between transacting and transcending.

From a marketing perspective, the maison has simply understood the modern luxury consumer better than most. In the age of algorithmic marketing and influencer churn, Hermès offers something quietly radical: consistency.