Hermes says buying power of luxury clients unchanged

By Astrid Wendlandt

PARIS, Oct 2 (Reuters) - French luxury goods maker Hermes
(HRMS.PA) sees no sign yet of affluent buyers tightening their
purse strings in spite of a sombre global economic outlook, the
head of the brand said on Sunday at Paris Fashion Week.

The luxury goods industry continues to grow at a solid pace
thanks to tourist buyers in Europe and strong appetite in
emerging markets, while more affordable products such as
L'Oreal (OREP.PA) and Clarins cosmetics have felt a slowdown.

"For the moment, there is no impact on our sales," Hermes
Chief Executive Patrick Thomas told Reuters at the brand's
fashion show in Paris, adding that he thought the purchasing
power of luxury consumers had not changed yet.

"But the fact that we see nothing today, does not mean that
we will not see anything tomorrow," he added. "When there are
moments of macroeconomic concern, they always tend to affect
our markets."

Hermes, known for its 10,000-euro Kelly handbags, joins the
chorus of luxury brands such as Dior, Louis Vuitton and Lanvin
that said recently trading remained buoyant even if consumer
confidence was down.

Last week, luxury goods stocks such as Burberry (BRBY.L),
LVMH (LVMH.PA), Swatch (UHR.VX) and Richemont (CFR.VX) took a
beating as analysts expressed concern the Chinese market -- the
industry's main growth engine -- could slow and global demand
could weaken.

Luxury stocks resisted well through the summer despite a
stock market sell-off triggered by the debt crisis but late
last month, investors started putting pressure on luxury
valuations on expectations that market could be hit as well.

"September sales went well," Thomas said. Rivals LVMH and
PPR (PRTP.PA) are due to publish third-quarter sales figures
later this month.

On a different matter, Thomas said Hermes would create
"very soon" an internal controlling company holding that would
make it harder for Hermes family shareholders to sell their
stakes to LVMH.

Two weeks ago, Hermes received the green light from a Paris
court to create a structure that will lock in the descendants
of the founding family for 20 years. [ID:nL5E7KF0TB]

Like other big luxury brands such as Louis Vuitton and
Dior, which are part of LVMH, and Chanel, Hermes makes the bulk
of its sales from leather goods and holds a show for its
ready-to-wear collection at Paris Fashion Week twice a year.

Last year, Hermes severed ties with its star designer
Jean-Paul Gaultier by selling its 45 percent stake in his
company and replacing him with ex-Lacoste creative director
Christophe Lemaire.

On Sunday, Lemaire presented a relaxed and comfortable
spring/summer collection, featuring ample, long white tunics
slit on the sides and minimalist bright orange dresses and
pleated skirts. His style contrasted with Gaultier's work,
which tended to be more energetic and often delved into Hermes'
leather and saddler's heritage.

"What I am looking for in my work is a balance between
something rich and simple, something that is easy to put on,
easy to wear and that is evocative of travel," Lemaire told
Reuters after the show.
(Editing by Dale Hudson)