Hermes Q4 - Cruising nicely

While the rest of the luxury market is feeling the heat, Hermes is still cruising in first class, sipping champagne. The French fashion powerhouse smashed fourth quarter forecasts, posting a 17.6% revenue jump to EUR4 billion.

The US and Japan led the charge with 22% revenue growth, while even a slowing China couldn't hold Hermes back, with Asia ex-Japan up 9%. Its leather goods and saddlery division, nearly half of total revenue, grew a whopping 21.7%. This brand still has customers on waiting lists. They don't even bother with celebrity endorsements. When customers are still lining up to drop five figures on a bag, recession fears look overblown.

Hermes shares popped 5% intraday before settling up 0.8%. Even with potential US tariffs looming, Hermes probably has enough pricing power to keep margins intact. With EUR4.6 billion in net profit, a EUR16 per share dividend, CEO Axel Dumas seems unfazed by economic turbulence.