Hermes plans big price rises, says no sign of slowdown

(VOVWORLD) - Birkin bag maker Hermes flagged plans to hike prices by 5% to 10% next year on rising costs and currency fluctuations, much more than in the past, after a sharp rise in sales in the third quarter with no signs of any slowdown yet.

Echoing upbeat comments earlier this month by rival LVMH, Hermes brushed off concerns that the industry's post-pandemic boom could be cooling due to a looming recession, as U.S. shoppers took advantage of the dollar's strength in Europe, and China rebounded sharply.

The company had so far been more conservative than peers, which have aggressively raised prices during the pandemic.

Hermes, which has waiting lists for its prized 10,000 USD-plus handbags and limits production to maintain exclusivity, 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.