French luxury goods group Hermès announced this week that its sales growth for the first three months of the year dropped, pointing to the attacks in Brussels and Paris (which have deterred tourists) and an economic slowdown in China. The Paris-based luxury brand, known for its pricey Birkin and Kelly bags. 

Luxury goods industry leader LVMH – parent to Louis Vuitton, Givenchy, Dior, and Marc Jacobs – said this month that it registered no sales growth for its fashion and leather goods division in the first quarter and Gucci parent Kering reported that its luxury business rose by 2.6 percent.

As reported by Reuters, “Hermès said it achieved a 15.4 percent rise in quarterly leather goods and saddlery revenue, accounting for half of total group sales, ‘driven by sustained demand and the increase in production capacities at the two new sites’ in France. Ready-to-wear and accessories sales slipped 1.9 percent due to a slowdown in Asia, the United States and France, while the Islamist militant attacks in Europe and slowing sales in Greater China and the U.S. dragged silk and textiles revenue down 9.2 percent.” 

RBC Capital Markets analysts noted that “Hermès’ business model remains more resilient than its peers.”