Hermès reported a 9% rise in second-quarter sales to €3.9 billion, driven by continued demand for its iconic handbags, though signs of a broader luxury slowdown are emerging. Despite outperforming competitors like Chanel and Louis Vuitton, growth slowed in its fashion, silk, and beauty divisions, causing shares to drop up to 3.9% in early Paris trading. Executive Chairman Axel Dumas noted a dip in demand from first-time customers and confirmed no further price hikes are planned this year after a 7% global increase and an extra 5% in the U.S. to offset tariffs. Hermès’s strategy of tightly controlled production and scarcity continues to shield it from industry turbulence, despite global luxury sales facing headwinds, especially in China and the U.S. Still, Dumas expressed confidence in China’s long-term market potential, even as analysts forecast a 2–5% decline in global luxury sales for 2025.