While questions linger regarding the sustainability of the luxury market in China, it is serving the high-end luxury brands well. Hermes has reported nearly a 13 increase in its first-quarter sales over the previous year.
However, the overall performance of the brand is down in both China and the European market. Fox Business News sites this as an indicator that the luxury market, as a whole, is weakening at this point.
But Hermes's overall performance slowed from the same period last year when revenue rose 17.6% as growth in sales of leather bags roughly halved from the fourth quarter to 7%, a drop it blamed on lower deliveries from its workshops.