tributed to China’s weak consumer confidence. Fashion and leather goods fell 5 per cent to €9.15 billion, while watches and jewellery dropped 4 per cent to €2.39 billion. Its rival Kering Group, also saw sales dipping 15 per cent to €3.79 billion for the third quarter. Gucci, which accounts for half of the group’s annual sales and two-thirds of its profit, was down 25 per cent in the quarter. The company warned that its 2024 operating income would nearly halve, reaching its lowest point in years, largely attributed to weak demand in China.  As major luxury brands take a hit during the reporting season, Hermes’ results seem to defy the trend. The French luxury company generated €3.7 billion in sales for the three months ending September, with sales growing in all geographic regions. Sales in Asia rose by 6 per cent to €6.16 billion. Japan jumped 12.1 per cent to €1.05 billion while Asia Pacific, excluding Japan, climbed 4.8 per cent to €5.12 billion. Meanwhile, European sales climbed 15.9 per cent to €2.60 billion, with France contributing €1.05 billion (up 14.2 per cent) and other European countries €1.55 billion (up 17.1 per cent). The Americas market grew by 11.7 per cent to €2.0 billion. Most notably, the Middle East experienced a 104.4 per cent surge, reaching €456 million in sales. All product categories experienced higher sales except for watches metier, which declined 6 per cent due to a high comparison base brought about by exclusive events in the previous corresponding period. According to CNBC, Hermes’ stock had soared to more than $22 per share at close of trading on October 24, lifting its market capitalisation to more than $233 billion.  Eric du Halgouet, executive VP of finance for Hermes, said during a press call that increased average transaction values across all regions have mitigated the impact of reduced foot traffic. He added that the loyalty of Hermes’ clientele has contributed to maintaining stable sales figures, despite prevailing global economic uncertainties. “Hermes’ sharp focus on HNW and UHNW clients is a strategic advantage,” said Milton Pedraza, CEO of Luxury Institute. “Kering’s Bottega Veneta, with retail sales up 9 per cent, is demonstrating similar credentials, not quite at the same level, but certainly compared to its brethren and many others.” The Chinese market  However, it’s important to note that Hermes is not entirely insulated from the global economic slowdown, including the reduced consumer spending in China. The impact of these economic headwinds, though less severe for Hermes compared to its competitors, is still evident in the company’s performance in world’s second biggest economy where consumer confidence has waned. “In China, there hasn’t been an interruption in trends, we’re still facing the lower traffic that started after the Chinese New Year but there hasn’t been an additional decline,” Halgouet said.  The company has unveiled one of its largest flagship stores in China in Shangzhen’s MixC shopping mall, followed by another flagship store in Beijing next year. “Recent dialogue we have initiated with members of our network of UHNW Chinese consumers shows that even in a challenging environment, they still see Hermes as a great investment in prestige and financial returns. That’s a global sentiment,” Pedraza.