While much of the luxury industry struggles with a prolonged slump in Chinese spending and fading demand from aspirational shoppers, Hermès International has posted accelerating second-quarter sales, powered by double-digit growth in the Americas and Japan. The French house reported a 6.7 percent revenue increase at constant exchange rates to 4.1 billion euros, outpacing the first quarter's pace and reinforcing its reputation as the sector's most resilient performer. Main Developments Leather goods remained the group's primary growth engine, with sales climbing 10.2 percent at constant exchange rates to 1.91 billion euros. The division, home to the Birkin and Kelly handbags, once again outperformed the wider business, accounting for nearly half of quarterly revenue. Silks were another standout category, rising 12.2 percent to 212 million euros, making it one of the fastest-growing divisions. Ready-to-wear posted more measured growth of 3.6 percent to 1.12 billion euros, while watches rose 4.4 percent and other businesses increased 4.0 percent. Beauty and fragrance was the only category to decline, with sales falling 9.5 percent at constant exchange rates to 107 million euros. Read also: Crocs and Famous Footwear Back-to-School Clog Raises Funds for Foster Youth The Americas remained Hermès' strongest market, with second-quarter sales rising 13.7 percent at constant exchange rates to 846 million euros, highlighting continued demand in the U.S. Europe also delivered solid growth: sales in France increased 6.2 percent to 407 million euros, while the rest of Europe rose 8.3 percent to 627 million euros, bringing regional growth to 7.4 percent overall. Japan posted one of the strongest performances of the quarter, with growth of 12.3 percent at constant currency, though reported sales were flatter due to exchange rates. The group opened a new store in Nagoya last month and re-opened its flagship in Osaka following expansion and renovation work. Asia-Pacific excluding Japan grew 2.5 percent, with conditions in China stabilizing after several challenging quarters. Overall Asian sales increased 4.4 percent at constant currency. The group opened a new store in Beijing during the quarter, while stores in Hong Kong and Taipei reopened after renovations and expansion. The Middle East was the only region to decline, with sales down 2.4 percent at constant currency, due to geopolitical tensions and the ongoing U.S.-Iran conflict. Background Hermès has long occupied a unique position in luxury, defined by absolute brand positioning and a supply-constrained model for its most coveted products. This strategy has made it less vulnerable to the demand swings that buffet peers. The results were largely in line with analysts' expectations, with “no major surprises,” said RBC analyst Piral Dadhania. “In tougher periods of luxury demand, Hermès' relative defensiveness is more attractive as it is likely to suffer less than peers, given its absolute luxury brand positioning and supply constrained model for its most coveted products, although we do anticipate a third consecutive year of modest margin compression from an elevated COVID level,” Dadhania added. Why It Matters Hermès' performance underscores a growing bifurcation in the luxury market: top-tier houses with scarcity-driven models continue to thrive, while brands dependent on aspirational spending face headwinds from China's slowdown and shifting consumer sentiment. The U.S. and Japan have emerged as critical growth engines, offsetting weakness elsewhere. Leather goods alone accounted for nearly half of quarterly revenue and continued to grow substantially faster than the group overall, reinforcing its role as the principal driver of sales and profitability. This concentration makes the division's health a bellwether for the entire company's fortunes. What's Next “In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the company said in a statement. Analysts will watch for any further margin compression, as well as the trajectory of Chinese demand as stimulus measures take effect. Store openings and renovations in key Asian markets suggest Hermès is betting on long-term regional growth, even as short-term conditions remain uneven.