How Hermès defied the luxury slump
And its lessons for other high-end brands
The luxury industry has lost its sparkle. A slowdown in the Chinese economy and a cost-of-living crisis in the West have led to a slump in sales of fancy frocks and posh bags. If, after a pause announced on April 9th, the high levels of tariffs threatened by Donald Trump are enacted they could throw the industry into a tailspin. Kering, a French luxury group that owns Gucci, has posted a string of profit warnings in recent quarters. At lvmh, another French luxury giant which owns Louis Vuitton, sales of fashion and leather goods have gone into decline.
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This article appeared in the Business section of the print edition under the headline “Bags of money”
Business
April 12th 2025- Despite the rally, Apple still faces a trade-war nightmare
- How Hermès defied the luxury slump
- TikTok’s bizarre sale process gets even weirder
- Tariffs will send costs soaring. Which firms will raise prices?
- Amazon’s $20bn push into orbit targets SpaceX and China
- Biohacking in the office
- Does every business need a cash pile like Warren Buffett’s?
From the April 12th 2025 edition
Discover stories from this section and more in the list of contents
Explore the edition
Does every business need a cash pile like Warren Buffett’s?
Not necessarily
Biohacking in the office
One company’s experiment with enhancing its workforce
Amazon’s $20bn push into orbit targets SpaceX and China
It thinks satellite internet could be a big money-maker
TikTok’s bizarre sale process gets even weirder
What will happen at the next deadline?
Tariffs will send costs soaring. Which firms will raise prices?
Brand, customer profile and the availability of alternatives all play a part
TikTok’s bizarre sale process gets even weirder
Donald Trump extends the highly politicised auction by another 75 days