Hermès Cannot Meet Demand for Luxury

Victoria Beckham is rumoured to have £1.5m worth of bags...

(The Guardian) Hermès cannot meet demand for luxury as profits leap to £257m

Rupert Neate

French fashion house hires 400 new employees to meet demand for £500 headscarves and Birkin handbags at up to £150,000

Hermès, the luxury Parisian fashion house, says it cannot produce enough £500 silk scarfs and £6,000 handbags to meet soaring demand.

The 174-year-old company, regarded as the must luxurious of the super-luxe labels, announced a 50% jump in first-half profits to €291m (£257m) due to huge demand for its Kelly and Birkin handbags in the US and Japan, despite the economic downturn. But chief executive Patrick Thomas warned investors that the company would not be able to maintain its stellar performance for the rest of the year because it was running out of stock.

(See the original article here)

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