11 Feb '13, 2am

Hermes $10,000 Birkin Purse Seen Leading to Record Sales

Hermes $10,000 Birkin Purse Seen Leading to Record Sales

For decades, fashionistas have known that a Birkin bag is a safe style bet -- if you can get your hands on one. That demand makes its producer, Hermes International SCA, the surest bet in the luxury industry when it comes to sales growth. With waiting lists that can run more than a year for a $10,000 purse, demand for Hermes handbags shows how the Paris- based company, which analysts estimate will report record revenue tomorrow, is capable of determining its own financial performance. Unlike LVMH Moet Hennessy Louis Vuitton SA, which last month reported stagnant revenue growth at its fashion and leather-goods unit, Hermes sales are constrained mainly by manufacturing capacity and the brand’s own desire to remain exclusive. While the industry will struggle to accelerate growth this year, sales at the very highest end of luxury -- Hermes’s domain -- are forecast to outperfor...

Full article: http://www.bloomberg.com/news/2013-02-10/hermes-10-000-bi...

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