Hermes is in a legal fight with two American customers who sued the French designer for refusing to sell them Birkin bags.
Hermes has been accused by two Californians of selling Birkin bags only to those customers who are deemed “worthy”.
In a class action lawsuit filed by a San Francisco resident, it was alleged that the plaintiff made “multiple efforts to purchase a Birkin handbag but was told each time that he had to buy other items and accessories”.
According to the lawsuit, “the other woman” was told that handbags are only sold to clients who have consistently supported our business.
They argued that Hermes violates US antitrust laws by “tying” purchases of the Birkin handbags with other purchases. They claimed they wanted to bring a class action suit on behalf of thousands of US consumers who bought Hermes products, or were told to purchase Hermes products in order to be eligible to purchase a Birkin.
Hermes has not responded to any requests for comment.
Birkin handbags, which retail from £9,000 up to £150,000 at stores and much higher on the secondary market, are considered as the ultimate status symbols.
A rare Himalayan Crocodile Birkin was sold in 2022 for a record price of $630,000 (£490,000).
This has led some to claim that bags are a better investment than global stock exchanges. Credit Suisse reported that the price of Birkins would rise by 38pc between 2021 and 2022, while the UK stock exchange returned 8pc.
Hermes announced in February that it would raise prices after posting a sales increase of 17.5%, which was significantly higher than analyst expectations. The company stated that it would increase its prices between 8pc to 9pc in this year.
Analysts from JP Morgan stated: “Hermes plays in a different division.” Hermes is a great example of what we consider to be a true over-delivery.
Hermes shares have increased by over 145pc in value since mid-2022 as the demand for exclusive products remains strong despite more challenging economic conditions.
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