Conservative Guard
  • Home
  • Breaking News
  • US
  • World News
  • China
  • Business
  • Politics
  • Crime
  • Finance
  • Entertainment
No Result
View All Result
  • Home
  • Breaking News
  • US
  • World News
  • China
  • Business
  • Politics
  • Crime
  • Finance
  • Entertainment
No Result
View All Result
theTotalStory | Conservative News & Opinion
No Result
View All Result
Home Finance

Affluent Splash on Pricey Hermes Bags – But Clouds Loom

Conservative Guard by Conservative Guard
October 20, 2022
in Finance
0
Affluent Splash On Pricey Hermes Bags – But Clouds Loom
7
VIEWS
Share on FacebookShare on Twitter

Brushing off higher prices, affluent spenders continue to splash out on luxuries including $10,000 handbags and premium drinks, updates from Birkin bag maker Hermes and spirits company Pernod Ricard showed on Thursday.

Yet with prices set to rise further, analysts were asking how long the boom can last before even the wealthy decide they must tighten their belts.

Hermes and Pernod Ricard both said they will continue to raise prices, after beating expectations in the July-September quarter. Business was boosted by Americans returning to Europe and Asia and taking advantage of the strong dollar. Mainland China also saw a strong rebound after COVID-19 restrictions were lifted, although some restrictions have since been reimposed.

Analysts were looking closely for signs that the post-pandemic spending boom could ease after months of robust appetite from shoppers drawing on pandemic savings to treat themselves to designer labels and champagne.

Some expect the industry’s rapid sales growth to begin to slow in the fourth quarter or starting next year, with the strongest labels expected to grab market share as consumers flock to best-known names.

The fourth quarter will likely start to show a deceleration with “very different performance from different brands,” said Flavio Cereda, an analyst at Jefferies, predicting stronger labels like Chanel, Hermes, Louis Vuitton and Dior, as well as some smaller brands like Moncler will accelerate market share gains.

Cereda expects “no big bounce” in business in China next year citing signals from the Communist Party Congress that authorities plan to maintain COVID curbs, and in Europe, predicts the “likely disappearance of the marginal buyer”, or someone who is not a regular or core luxury consumer.

Jefferies forecasts 13% sales growth for the industry this year and 7% next year.

The world’s biggest luxury group LVMH last week kicked off the earnings season with forecast-beating sales — and no signs of a let-up in demand.

The U.S. market, which rose to become the world’s largest luxury market last year, has been closely scrutinized for any signs of weakness, particularly among less affluent shoppers and after data from credit card sales showed a decline in luxury spending in recent months.

“There was no slowdown in consumer demand,” in the United States over the quarter despite price hikes, Pernod finance chief Helene de Tissot said on Thursday, noting the company had raised prices at the start of the month in that market by mid single digits.

Pernod Ricard, which raised prices by around 7% globally over the quarter, said it was confident sales growth would remain dynamic through its 2023 fiscal year, as consumers continue to trade up to its premium spirits.

Hermes plans to raise prices sharply next year, following in the footsteps of rival luxury giants which have taken advantage of booming demand for fashion and handbags carrying designer labels.

Hermes, which has waiting lists for its prized $10,000-plus handbags, increased prices by around 4% this year and by 1.5-2% on average in previous years. That compares with double-digit price hikes at Chanel.

Companies catering to less affluent consumers have also so far been able to pass on price increases, trading updates from the world’s two biggest consumer firms, Nestle and Procter & Gamble showed this week. Shoppers continued to pay more for goods like Nescafe coffee and Gillette razors despite surging inflation.

The results from Pernod and Hermes bode well for beauty giant L’Oreal and Gucci-owner Kering, which both report results later on Thursday.


© 2022 Thomson/Reuters. All rights reserved.

Related

Previous Post

U.S. Details How It Plans to Police Foreign Firms

Next Post

F-35 fighter jet crashes at Hill Air Force Base in Utah; pilot ejects safely, avoids buildings

Next Post
F-35 Fighter Jet Crashes At Hill Air Force Base In Utah; Pilot Ejects Safely, Avoids Buildings

F-35 fighter jet crashes at Hill Air Force Base in Utah; pilot ejects safely, avoids buildings

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 11.3k Subscribers
  • Trending
  • Comments
  • Latest
Ukraine Attacks Russia’S Hold On Southern City Of Kherson

Ukraine attacks Russia’s hold on southern city of Kherson

October 27, 2022
Amazon To Warn Customers On Limitations Of Its Ai

Amazon to Warn Customers on Limitations of Its AI

November 30, 2022
Us Business Outlook More Pessimistic: Fed’S Beige Book

US Business Outlook More Pessimistic: Fed’s Beige Book

October 20, 2022
Michigan Man Charged With Lying About Contact With Taiwan Navy In Bid To Get Security Clearance

Michigan man charged with lying about contact with Taiwan navy in bid to get security clearance

October 25, 2022
Tensions Rise On Peninsula Over Fears North Korean Eyeing ‘Tactical’ Nukes With New Policy

Tensions rise on peninsula over fears North Korean eyeing ‘tactical’ nukes with new policy

0
Times Square May Get One Of The Few Spectacles It Lacks: A Casino

Times Square May Get One of the Few Spectacles It Lacks: A Casino

0
Border Containers 34754 C0 435 5219

Arizona refuses U.S. demand to remove shipping containers from border

0
How Finnair’s Huge Bet On Faster Flights To Asia Suddenly Came Undone

How Finnair’s Huge Bet on Faster Flights to Asia Suddenly Came Undone

0
On This Day In History, Jan. 29, 1936, National Baseball Hall Of Fame Elects First Members

On this day in history, Jan. 29, 1936, National Baseball Hall of Fame elects first members

January 29, 2023
Rhea Ripley Wins Royal Rumble Women’S Match, Outlasts Liv Morgan

Rhea Ripley wins Royal Rumble women’s match, outlasts Liv Morgan

January 28, 2023
Detroit Police Looking For Men Seen On Camera Stealing Car With Baby Inside

Detroit police looking for men seen on camera stealing car with baby inside

January 28, 2023
Logan Paul, Ricochet Stun Pro Wrestling Fans With Electric Royal Rumble Moment, Elon Musk Weighs In

Logan Paul, Ricochet stun pro wrestling fans with electric Royal Rumble moment, Elon Musk weighs in

January 28, 2023

Recent News

On This Day In History, Jan. 29, 1936, National Baseball Hall Of Fame Elects First Members

On this day in history, Jan. 29, 1936, National Baseball Hall of Fame elects first members

January 29, 2023
Rhea Ripley Wins Royal Rumble Women’S Match, Outlasts Liv Morgan

Rhea Ripley wins Royal Rumble women’s match, outlasts Liv Morgan

January 28, 2023
Detroit Police Looking For Men Seen On Camera Stealing Car With Baby Inside

Detroit police looking for men seen on camera stealing car with baby inside

January 28, 2023
Logan Paul, Ricochet Stun Pro Wrestling Fans With Electric Royal Rumble Moment, Elon Musk Weighs In

Logan Paul, Ricochet stun pro wrestling fans with electric Royal Rumble moment, Elon Musk weighs in

January 28, 2023

TrendingNews

North Korea Rips U.s. Over Decision To Send Tanks To Ukraine

North Korea rips U.S. over decision to send tanks to Ukraine

by Conservative Guard
January 27, 2023
0

David Depape Breaking Into Pelosi Home Captured On Us Capitol Police Surveillance Footage

David DePape breaking into Pelosi home captured on US Capitol Police surveillance footage

by Conservative Guard
January 27, 2023
0

New updates

On This Day In History, Jan. 29, 1936, National Baseball Hall Of Fame Elects First Members

On this day in history, Jan. 29, 1936, National Baseball Hall of Fame elects first members

by Conservative Guard
January 29, 2023
0

Rhea Ripley Wins Royal Rumble Women’S Match, Outlasts Liv Morgan

Rhea Ripley wins Royal Rumble women’s match, outlasts Liv Morgan

by Conservative Guard
January 28, 2023
0

Browse by Category

  • Breaking News
  • Business
  • China
  • Crime
  • Entertainment
  • Finance
  • Politics
  • US
  • World News

© 2022 www.conservativeguard.com

No Result
View All Result
  • Conservative Guard

© 2022 www.conservativeguard.com

Go to mobile version