Skip to content

Hermes Soars on Birkin Bag Maker’s Record Profitability

  • Recurring operating margin hit record high in first half
  • Hermes isn’t seeing signs of demand slowdown: Axel Dumas
U.K. Retail as Inflation Posts Temporary Slowdown
Photographer: Hollie Adams/Bloomberg
Updated on

Hermes International’s profitability rose to record levels in the first half as the maker of the $10,000-plus Birkin bag became the luxury industry’s standout performer.

The French company’s shares soared as much as 9.6%, the biggest increase in more than two years, after it said its recurring operating margin reached a historical high of 42%, up from 41% a year earlier.