Signs the recession is coming to an end?
Hermès, the family-controlled French luxury goods group, has reported a 12 per cent increase in second-quarter sales, taking the market pleasantly by surprise. The appetite for its Kelly and Birkin bags, which sell for astronomical prices, has clearly not abated, nor has demand for its traditional silk squares and ties. Even better, the Japanese are buying again, with Hermès’ sales in Japan rising by almost 25 per cent in the latest quarter (before currency adjustments) compared with the same period last year. Japan is the company’s largest market, accounting for about a fifth of total sales. The recovery in the Japanese market follows a steady drop in sales since July last year. – from FT