Hermes Is Having a Painful Ferrari Moment

Hermes International SCA has long been compared to Ferrari. The iconic products sold by both companies are expensive, and very exclusive. There are lengthy waiting lists to take ownership of a supercar, or a Birkin or Kelly handbag.

But right now, the comparison is proving unflattering to Hermes. As my colleague Chris Bryant has noted, the resale value for some Ferraris has come under pressure, forcing the company to be conservative in its financial guidance as it prioritizes scarcity over increasing sales volumes. Birkin and Kelly bags are also changing hands for less of a premium, raising questions as to whether Hermes’ allure is waning amid a slew of new products from rivals, most notably Chanel Ltd. but also LVMH’s Dior.