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Hermès Will Boost Handbag Production As Sales Flourish Amidst Uncertainty

BBG News

Hermès has revealed plans to increase production of their handbags due to their sales outpacing those of rival brands, notably those within LVMH’s collection such as Louis Vuitton, Loewe, and Dior. Last week, this prestigious French brand grabbed attention by surpassing LVMH to become the most valuable luxury stock globally, with a market capitalization of approximately $276.3 billion USD.

In Q1 of this year, the company managed to impress investors with a 9% boost in revenue, as it reported growth in all regions where it is active. Its leather goods sector stood out, experiencing a 10% surge due to the success of new models such as the Médor and Mousqueton bags. During an earnings call on April 17th, Eric du Halgouët, Hermès’ executive vice president of finance, told WWD that the brand started the year with minimal inventory, particularly for leather goods, which led to a strategic decision.

Between now and 2028, Hermès has unveiled a strategy to gradually boost its manufacturing capabilities. Next year, they’ll launch a Loupes factory, followed by a Charleville-Mézières factory in 2027, and a Colombelles workshop for their Kelly and Constance bags in 2028. However, customers can anticipate production growth this very year as the brand initiates construction of its Isle d’Espagnac factory in central France.

This summer, with tariffs about to be implemented on imports entering the U.S., this news is one of the more positive headlines for luxury goods lately. While LVMH has established factories in California and Texas, Hermès maintains its commitment to its “Made in France” philosophy. In each factory, they employ between 200-300 artisans. New hires will undergo an 18-month training program at Hermès’ apprentice education center, École Hermès des Savoir-Faire.

Stay tuned to TopMob for the latest updates in the luxury sector.

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2025-04-22 22:25

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