Luxury French fashion house Hermès reported a 23% increase in sales, but its results may reveal signs that Paris is outperforming London as a destination for high-end tourist shopping.
While UK sales were up, growth was fastest in France, at 28%, in what might be the latest sign that rich shoppers are choosing Paris over London. Luxury handbag maker Mulberry closed its Bond Street shop in February, after blaming the end of VAT-free shopping for a decline in sales.
Data commissioned by a group of organisations campaigning for the return of VAT-free shopping last month found that while London shopping had rebounded to pre-Covid levels, shopping in other major European destinations had easily exceeded 2019.
France was also the largest growth area for fellow luxury French brand LVMH, which reported its results earlier this week.
CEO Axel Dumas hailed the loyalty of the high-end brand’s customers, with sales growing by at least 15% in all regions and every product line except perfume.
Sales at Hermès’ leather goods division - which includes its Birkin and Kelly handbags that sell for as much as £200,000 - was up by 19%, while clothes and accessories saw the fastest growth.
The company said it will give €170 million back to its almost 20,000-strong workforce through a profit-sharing scheme, after handing all employees a €4,000 bonus in February.
Dumas said he is confident growth will continue this year, despite “economic, geopolitical and monetary uncertainties”.
