Core Insights - Hermès International continues to demonstrate strong performance in the luxury goods sector, with third-quarter sales showing robust growth driven by the demand for Birkin bags among affluent consumers [1] Financial Performance - In the third quarter, Hermès reported a revenue increase of 9.6% year-on-year, reaching €3.88 billion (approximately $4.52 billion), slightly above analysts' expectations of a 9.3% increase [1] - The U.S. market showed particularly strong performance, with quarterly revenue growth of 14.1%, alleviating concerns regarding the impact of tariff policies on consumer spending [1] - The company's stock has declined by 3.1% year-to-date, similar to the performance of LVMH [1] Business Strategy - Hermès employs a scarcity strategy, managing product availability to maintain resilience in the luxury market, achieving a stable annual growth rate of 6%-7% [2] - The core business segment of leather goods and saddlery saw a sales increase of 13.3%, although this was slightly below expectations [2] Market Trends - There are signs of improvement in the Chinese market, with Hermès noting "slight improvement" in the Greater China region during the third quarter, attributed to stabilizing real estate prices and positive stock market trends [3] - This cautious optimism aligns with observations from other major brands like LVMH and L'Oréal, which have also reported similar recovery signs [3] - Despite the positive outlook, Hermès has not yet observed a significant change in trends for the current quarter [3]