Hermes has seen its operating profit jump by 28% to €2.95 billion in the first half.
👉 Background: Hermes is the iconic luxury brand that started as a harness shop, before launching its famous Birkin and Kelly bags. And these bags are not cheap - they start from around $10,000 USD and reach up to $250,000 USD.
👉 What happened: Hermes has seen its operating profit jump by 28% to €2.95 billion in the first half. And to top it all off, its major rivals like LVMH have struggled in the past few months.
👉 What else: The scarcity of Hermes' bags and purses not only make them a symbol of wealth, but also a savvy investment.
💡In the world of high-end fashion, luxury goods often hold their value over time, making them a type of alternative investment.
💡Luxury brands like Hermes have products that are in constant high demand, but they also intentionally maintain a low supply for their iconic items. And, this scarcity often results in they products appreciating in value over time.
💡In fact [name], the value of a Birkin has increased by over 500% in the last 35 years. But like any investment, it can fluctuate. Case in point: prices for secondhand watches from sought-after brands like Rolex have fallen more than 20% over the last year.
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