Despite lines out the door at the Paris store, Hermès and other European luxury companies have been lagging. China’s weaker-than-normal economy has plagued luxury houses, many of which have come to rely on Chinese sales. According to Your Survival Guy’s boots-on-the-ground view of the Paris luxury market, Hermès has fared better than the rest of the luxury goods market, but even so, Hermès and luxury in general are still not in the clear. Mimosa Spencer and Tassilo Hummel report for Thomson Reuters on Hermès’ recent comments on results:

Birkin bag maker Hermes signalled a slight improvement in key market China as it reported a 9.6% rise in third-quarter sales on Wednesday, outpacing peers as wealthy shoppers splashed out on its $10,000 handbags.

The cautiously upbeat comments on Chinese demand, which accounts for roughly a third of global luxury sales, follow similar signals from rivals LVMH and L’Oreal.

“One could note a very slight improvement in the third quarter,” finance chief Eric de Halgouet told journalists on a call, citing stabilising real estate prices in large cities and positive stock market trends.

Action Line: Hermès is opening a new store in Nashville. Early results there could be evidence of the market’s resilience or weakness. Tell me what you see in your city. Email me at ejsmith@yoursurvivalguy.com. Your Survival Guy will certainly continue to monitor the luxury goods market for signs of renewal or failure. Click here to subscribe to my free monthly Survive & Thrive letter.

P.S. Young Research’s Luxury Goods Index has bounced back simultaneously with the renewal of some optimism in the luxury goods market.

Originally posted on Your Survival Guy.