Hermes Outperforms Other Luxury Brands In Market Downturn.

Anyone within the luxury industry wanting to work the formula out for success during the current uncertain economic climate should look at Hermes. After re-assuring investors in a February announcement by Axel Dumas that normalisation will come quickly, despite shuttered stores, it has gone on to outperform the rest of the luxury goods industry, and seen a comparatively small decline on profits for the first quarter in comparison with other brands.

The reason for this is, colloquially, Birkin bags are virus proof.  This is the general sentiment put out by most, and is pretty close to reality.  Hermes is a band which prides itself, and which has meticulously constructed an image as, a premier luxury goods brand.  It has successfully maintained this throughout two world wars, and a series of global economic downturns.  

In the present difficulties, Birkin and Kelly model handbags have held their price stability, and beyond an initial decline in demand, have regained their position as investment vehicles and Veblen goods of the highest order.

And in comparison with LVMH, which has seen a 15% decline in global sales, Hermes has seen only a 7.7% decline, despite 75% of its brick and mortar stores being closed.  The result of this is a 2.6% increase in shares.

Hermes demonstrates that the timeless values of exceptional quality, combined with fearless elitism and razor sharp marketing can weather almost any storm.