A 23% increase in sales was reported by French luxury fashion house Hermès. It may, however, indicate that Paris is a better tourist shopping destination than London.
Sales in the UK increased, but growth in France was fastest, at 28%, perhaps a sign that wealthy shoppers are preferring Paris to London. Sales declined at Mulberry’s Bond Street shop because of VAT-free shopping, according to the Luxury Handbag maker.
The shopping levels in other major European destinations have easily outpaced those in London based on data commissioned by a group campaigning for VAT-free shopping last month.
In addition, LVMH’s most recent results showed that France is the most important market for the luxury French brand.
The CEO of Axel Dumas has praised the brand’s loyal customers, noting that sales have grown by 15% to date in each of the brand’s regions, except for perfume.
In February, the company gave its almost 20,000 employees a €4,000 bonus, and it plans to return €170 million to them through a profit-sharing scheme.
According to Dumas, despite uncertainties in the economy, geopolitics, and monetary systems, growth is expected to continue this year.