What Does Hermès Third Quarter Results Mean for Secondary Market Birkin Premiums
While rising retail prices have reduced the secondary market premium, Hermès bags remains the leader in secondary market premium to retail.
Hermès Third Quarter Results
While most luxury brands have reported disappointing third quarter results, Hermès broke the trend and reported solid results inline with expectations. Overall Hermès reported 11.2 billion Euro in sales, 14% growth for the first three quarters of 2024, compared to the same period last year. Sales in Asia (mostly China), excluding Japan remains its largest geography at 5.1 billion Euros but only grew 7%, due to slower traffic in China. At 45% of total sales, continued weakness in China could hurt Hermès' ability to maintain double digit growth. That being said, since the Leather Goods and Saddlery business is 4.8 billion Euro, or 43% of total, it is possible the bags could be shifted to higher growth markets if China demand declines further. Growth in all other regions ranged from 13% in the US, 14% in France, Rest of Europe 18% and 23% in Japan. Hermès largest business line, Leather Goods and Saddlery reported sales growth for the 9 months ending September of 17% versus last year. Demand for its core Birkin and Kelly bags remain strong along with new limited edition versions. Price increases for many Hermès bags including the Birkin and Kelly in the range of 5-10% from last year have also likely contributed to growth.
New Hermès bags including the Constance Élan and Bolide à dos are also helping drive sales in its largest category. Hermès opened its twenty-third leather goods workshop in France, with more facilities in the works to meet demand.
Another bright spot for Hermès is its Other categories including home and jewelry that generated 1.4 billion Euros and grew 17% versus last year. One of the few areas of Hermès is exposed to reduced luxury spending is its silk and textiles category. This segment generated 650 million Euros for the first 9 months of the year but had the slowest growth of only 2%. This category is most exposed to aspirational shoppers that have been most impacted by inflation and the economy.
Birkin Bag Price
Prices for the most popular Hermès Birkin in Togo leather in size 25 and 30 have increased double digits since 2021. The Birkin 25 in Togo is now $11,400, up 16% from 2021 when the bag retailed for $9,850. The Birkin 30 in Togo is now $12,500, up 14% from 2021 when the bag sold for $11,000. The Togo leather Birkin 25 and Birkin 30 in neutral and pale pastel colors are the most popular bags in retail and in the secondary market. The secondary market prices for the Togo Birkin 25 is a slight premium to the comparable Togo Birkin 30. In general, a pristine Togo Birkin 25 sells for $29,000 to $33,000 on marketplace while auction prices can range from $26,000 to $35,000. A pristine Togo Birkin 30 sells for between $27,000 to $31,000 on marketplace and also has slightly wider range at auction of $24,000 to $33,000. Auction dynamics are driven by number of bidders for a specific bag, lower reserve prices and availability of the bag in the secondary market. There is also less price sensitivity for some buyers at auction when there is little availability of a new in demand Hermès color. The availability of pristine Togo Birkins in the secondary market along with demand for a specific color is fluid which can impact auction prices more than fixed price channels.
Secondary Market Birkin Premium
While most pristine luxury bags sell at a discount to retail on the secondary, Hermès is one of the few brands that consistently sells at a premium to retail. The Birkin and Kelly sell at the highest premium, especially in leather. While the Hermès Mini Kelly II in leather sells at the highest premium to retail on the secondary market at just over 3x, pristine leather Birkins overall tend to sell at a higher premium to retail versus leather Kelly bags. Recent increases in retail prices have reduced the secondary market premium since resale prices have not increased at the same rate as Hermès price increases. In 2024, a Togo Birkin 25 in pristine condition sells for about 2.5x the Hermès boutique price, while the Togo Birkin 30 sells at about 2.4x. Leather Birkin 25 and Birkin 30 bags sold closer to 3x retail in 2021.
Looking ahead, it is reasonable to assume further price increases by Hermès which will likely reduce the secondary market premium. That being said, Hermès bags are still the leader in secondary market premium over retail due to demand that continues to exceed supply for leather Birkin and Kelly bags.
Buying and Selling an Hermès Birkin at Sotheby's
Sotheby's can assist with buying or selling your next Hermès Birkin. Sotheby's handbag auctions feature rare and collectible Birkin bag and classic leather Birkins. We also have a carefully curated selection of Birkin bags in pristine and excellent condition, available for immediate shipping. Expect to find the most popular Hermès Birkins in leather and exotic materials, new colors with 2024 date stamps, classic neutrals in all sizes and rare limited edition bags. We accept Birkin bags for consignment at auction and marketplace. Prices for Birkin bags range from $20,000 to $35,000 for leather while exotic Birkin bags are generally priced at $40,000. The price of the Himalaya Birkin bags start at over $100,000.
- Browse Hermès Birkin available for immediate delivery.
- Explore upcoming handbag auctions across the globe.
- Speak to a Salon Associate in New York, Zurich or Hong Kong to schedule an appointment.
- Contact a Handbag Specialist about selling an Hermès Birkin bag.
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