Hermès Will Boost Handbag Production As Sales Flourish Amidst Uncertainty
After dethroning LVMH as the most valuable luxury stock in the world last week, the exclusive luxury label plans to continue opening new artisanal workshops in France.
Hermès has announced that it will continue to boost handbag production as its sales outperform those of its competitors, especially LVMH’s portfolio, including Louis Vuitton, Loewe, and Dior. Last week, the exclusive French label made headlines for replacing LVMH as the world’s most valuable luxury stock as it reached a market cap of $276.3 billion USD.
Achieving 9% revenue increase in Q1 of this year, the company wowed investors with growth across all regions where it operates. Its leather goods performed particularly well, showing a 10% rise driven by new models like the Médor and Mousqueton bags. In an April 17 earnings call, WWD reported that Hermès’ executive vice president of finance Eric du Halgouët said the brand began the year “with low stock levels, especially for leather goods,” prompting the strategic move.
From now until 2028, Hermès has revealed a plan to progressively strengthen its production capacities, opening a Loupes factory next year, a Charleville-Mézières factory in 2027, and a Colombelles workshop for its Kelly and Constance bags in 2028. However, customers will already see production increase this year as the label plants the opening of its Isle d’Espagnac factory in central France.
With tariffs set to take effect on imports coming to the US this Summer, the announcement is one of the more hopeful headlines for luxury as of late. Though LVMH has opened factories in California and Texas, Hermès remains married to its Made in France ethos. Employing between 200-300 artisans in each factory, Hermès will guide the new hires through an 18-month program at its apprentice training center École Hermès des Savoir-Faire.
Stay tuned to Hypebeast for the latest updates in the luxury sector.
