Hermes Faces Difficulty in Luxury Recession | Label Postpones New Store Openings

Posted on: Jun 6

Even with Victoria Beckham's ridiculous, over-the-top spending on her Birkin bag collection, Hermes is still dealing with financial woes. It's a common story these days with fashion labels as people are cutting out luxury purchases.

Though Hermes recently opened a new boutique in the East Hamptons, the company has had to postpone the scheduled openings of two new stores in China. Some people might be surprised to hear it, though, since the brand was considered one of the top labels, along with Louis Vuitton and Gucci, doing well during the financial crisis.

Hermes' CEO addressed the issue recently:

“We have a crisis, all luxury companies can feel it,” CEO Patrick Thomas said at a shareholders' meeting yesterday. “It would be illusory to think that Hermes can escape.”

At least the company's hiring freeze isn't affecting the leather-goods department yet. Only time will tell how well they survive in the months to come.

[Source: NY Mag]
[Image: nep/Flickr]