No Tricks, All Treats as Hermes And Prada Defy Luxury’s Haunted Market
It may be spooky season for high fashion, but not for Prada and Hermes. Despite an industry-wide downturn, these two brands posted double-digit Q3 growth — haunting struggling peers like LVMH and Gucci. Their resilience defies weakened Chinese demand and the evaporating middle-market consumer, contributing to a polarized industry.
- Hermes flexed an 11% yearly bump in Q3 sales, rising to €3.7B ($3.99B), buoyed by a resilient ultra-wealthy clientele and a 23% surge in Japan sales.
- Prada posted an 18% annual surge as its portfolio company, Miu Miu, doubled sales and evolved into luxury’s hottest name.
A tale of two customers: The sector’s slowdown divides ultra-premium houses from more accessible rivals. Brands targeting affluent shoppers thrive off steady demand, as Hermes demonstrated by confidently implementing a 9% price hike while maintaining growth. Meanwhile, LVMH’s recent revenue miss signals trouble for brands more reliant on squeezed middle-market consumers — showing that, in this spooky market, some brands cast more potent spells than others.
