Core Insights - Hermès International reported Q3 sales of EUR 3.9 billion, reflecting a 10% increase at constant exchange rates compared to the previous quarter, with notable growth in Europe, the Americas, and Asia [2] - The group's consolidated revenue reached EUR 11.9 billion by the end of September 2025, marking a 9% increase at constant exchange rates and a 6% increase at current exchange rates [2] - Currency fluctuations negatively impacted revenue by EUR 254 million [3] Segment Performance - The Leather Goods and Saddlery sectors, along with Other Hermès sectors, demonstrated solid growth [3] - The Ready-to-wear and Accessories, as well as Silk and Textiles sectors, experienced accelerated growth in Q3 [3] Future Outlook - Hermès maintains its ambitious growth targets for 2025, with an unchanged outlook despite a high comparison basis from the previous year [3]

Core Insights - The acceleration in sales at Hermes indicates a positive trend in the luxury goods market, following improved sales growth reported by LVMH, the owner of Louis Vuitton [1] Company Summary - Hermes has experienced a notable increase in sales, suggesting strong consumer demand for luxury products [1] - LVMH's recent performance also reflects a broader recovery in the luxury sector, which may benefit other companies in the industry [1] Industry Summary - The luxury goods market is showing signs of growth, with both Hermes and LVMH reporting improved sales figures, indicating a potential rebound in consumer spending [1]

Hermes sales grew as the Birkin bag maker continued to attract wealthy shoppers — especially in the US https://t.co/Ps23Ycgbht ...

Core Insights - Hermes reported a 9.6% increase in third-quarter sales, indicating a slight improvement in the key market of China, outperforming its peers as affluent consumers spent on luxury items priced at $10,000 and above [1] Company Performance - The sales growth of 9.6% in the third quarter highlights Hermes' strong positioning in the luxury market, particularly in China, where wealthy shoppers are increasingly purchasing high-end products [1] Market Trends - The performance of Hermes suggests a positive trend in luxury spending among affluent consumers, especially in the Chinese market, which is crucial for luxury brands [1]

Core Insights - The company reported solid sales growth in the third quarter, with sales reaching €3.9 billion, reflecting a 10% increase at constant exchange rates and a 5% increase at current exchange rates compared to the previous quarter [1] - Consolidated revenue for the group at the end of September 2025 was €11.9 billion, marking a 9% increase at constant exchange rates and a 6% increase at current exchange rates compared to the same period in 2024 [2] - The company maintains a positive outlook for medium-term revenue growth despite global economic uncertainties, supported by a strong artisanal model and customer loyalty [9] Sales Performance - Sales by geographical area showed growth across all regions, with notable performances in Asia excluding Japan (+4%), Japan (+15%), the Americas (+13%), and Europe excluding France (+12%) [5][13] - The Leather Goods and Saddlery sector achieved a remarkable growth of 13%, driven by strong demand for iconic products and new collections [4][15] - The Ready-to-wear and Accessories sector grew by 6%, with an acceleration noted in the third quarter [11][15] Sector Analysis - The Leather Goods and Saddlery sector reported sales of €5.3 billion, up 10.2% from the previous year [15] - The Ready-to-wear and Accessories sector saw sales of €3.4 billion, reflecting a 3.5% increase [15] - The Perfume and Beauty sector experienced a decline of 5.6%, attributed to a high comparison base from the previous year [11][15] Regional Highlights - In Asia excluding Japan, the region benefited from a value strategy and local client loyalty, with significant store renovations and expansions contributing to growth [5] - Japan's growth was sustained by local client loyalty, with a 15% increase in sales [5][13] - The Americas confirmed their momentum with a 13% increase, particularly driven by new store openings in the United States [5][13] Sustainable Practices - The company opened a new leather goods workshop in L'Isle-d'Espagnac, which will employ 260 artisans, reinforcing its commitment to local employment and high environmental standards [7]

Core Insights - Hermès International's shares increased by 1.4% to 2,250 euros following the appointment of Grace Wales Bonner as the new creative director for menswear [1] Group 1: Leadership Transition - Grace Wales Bonner, a 35-year-old British Jamaican designer, will succeed Véronique Nichanian, who has been with Hermès for 37 years [2] - Nichanian's final collection will be presented in January 2026, while Wales Bonner's first collection is scheduled for January 2027, allowing for a smooth transition [2][3] - The quick announcement of Wales Bonner as Nichanian's successor suggests that the transition plan has been in development for some time [3] Group 2: Financial Performance Expectations - Analysts anticipate Hermès will report an organic growth of 9.7% across all categories in the upcoming third-quarter results [3] - Sales for ready-to-wear items are expected to rise by 8% for the three months ending September 30 [4] - Leather goods sales, particularly the iconic Birkin and Kelly models, are projected to increase by 14.5%, indicating Hermès' strong market position [4] Group 3: Design Philosophy and Market Position - Nichanian was known for her "quiet luxury" aesthetic, which combined comfort, luxury, utility, beauty, heritage, and simplicity [5] - The decision to hire Wales Bonner, who has her own established brand, was unexpected, as analysts anticipated an internal promotion [5] - Industry experts believe that any external hire would need to align closely with Hermès' existing values and design philosophy [6]

Luxury Market in China - Luxury brands are adapting to structural and generational changes in the Chinese market as GDP growth slows to 4.8% in Q3, the lowest in a year, influenced by a deflationary mindset and property slump affecting household wealth and consumer confidence [3] - Despite economic challenges, there is still a strong appetite for premium goods in lower-tier cities, with surprising vibrancy noted in places like Shantou, where foot traffic in upscale malls remains robust [5][6] - The luxury spending trend is shifting, with younger consumers in lower-tier cities first encountering luxury through Chinese brands rather than foreign names, indicating a new demographic engagement with luxury goods [6] Company Performance - 3M reported stronger-than-expected Q3 earnings and revenue, raising its full-year profit forecast and adjusting its 2025 EPS guidance to a range of $7.95 to $8.05, up from $7.75 to $8.00, due to stronger organic growth and margin expansion [7] - Coca-Cola exceeded organic sales estimates in Q3 and anticipates full-year organic sales growth of about 5% to 6% and EPS growth of about 3% [8] - Lockheed Martin surpassed Wall Street expectations for Q3 profit and revenue, driven by strong performance in aeronautics and missile programs, along with sustained demand from U.S. and allied defense customers [9] Media Industry Developments - Warner Bros. Discovery is open to a sale following interest from multiple parties, including Paramount Skydance, as they conduct a comprehensive review of strategic alternatives to unlock asset value [10] - Disney+ and Hulu experienced significant subscriber cancellations, with approximately 7 million customers leaving in response to Jimmy Kimmel's suspension, indicating a potential impact on subscriber growth and retention strategies [11] Stock Market Insights - Goldman Sachs has rebalanced its Buyback Aristocrat stocks, which have outperformed the equal-weight S&P 500 by an annualized average of 3 percentage points since 2012 and by 4 percentage points year-to-date [14] - The top five stocks by trailing 12-month buyback yield include Tapestry at 21%, Invesco at 19%, Aptiv and Globe Life at 16%, and GM at 15% [14]

Industry Trend - The fashion industry is experiencing a talent shake-up [1] - The shake-up aims to revive the ailing luxury market [1]

Market Entry & Expansion - India's luxury retail sector is emerging, coinciding with a growing number of millionaires [1] - Gallery Laat is launching as India's first luxury department store, featuring over 200 international brands [1] - 70% of the 270+ brands are entering the Indian market for the first time [2] - Adita Burla group plans to expand the store concept to Delhi and potentially two or three other Indian markets [2] Market Characteristics & Challenges - Luxury retail in India is currently dominated by ethnic wedding wear and jewelry [2] - Gallery Lafayette will test the spending habits and cultural preferences of India's affluent consumers [2]

Luxury is a long-term proposition, but Kering didn't have time to wait for its embryonic beauty division to flourish, writes @AndreaFelsted (via @opinion) https://t.co/3a46OIp2nf ...