Sales Rise at Hermès, Gucci-Owner Kering, Defying Price Increases

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Sales Rise at Hermès, Gucci-Owner Kering, Defying Price Increases
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Inflation and other economic headwinds aren’t cooling demand for high-price handbags and other luxury baubles: Hermès said it expects to increase its prices by around 5% to 10% after reporting sales that easily topped analyst estimates

Two European luxury-goods makers report better-than-expected sales, thanks to demand for high-price handbags and other expensive items

Consumer spending has held up relatively well so far despite inflation, but experts say we’re approaching an inflection point. WSJ’s Sharon Terlep explains the role “elasticity” plays in a company’s decision on whether to raise prices. Photo illustration: Adele Morganaren’t cooling demand for high-price handbags and other luxury baubles.

On Thursday, Hermès International SCA, the French maker of $10,000 handbags, said it expects to increase its prices by around 5% to 10% after reporting sales that easily topped analyst estimates.

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