The handbag maker reported a rise in third-quarter sales on Thursday Birkin Hermes HRMS.PA, continuing to outperform rivals hit hard by China’s recession as its luxury handbags attract wealthy buyers.

In particular, the French luxury company had revenues of 3.7 billion euros ($3.99 billion) for the three months ended September, an increase 11.3% at constant exchange ratesaccording to a consensus estimate of analysts cited by Jefferies.

The group said it was sticking to its medium-term guidance for revenue growth at constant exchange rates despite global economic, geopolitical and currency uncertainties, adding that it would continue hiring.

“We see Hermes as the best current opportunity to protect the portfolio from a difficult (second half 2024), suffering from a global cyclical slowdown, exacerbated by structural issues in ChinaBernstein analyst Luca Solca said, noting that all segments except watches posted higher-than-expected growth.

Hermes’ famous classic designs and strict production and inventory management helped to strengthen the establishment of the label’s exclusivity and established the company as a stable brand in the industry.

Bags like the coveted $10,000+ model, Birkinare affordable only for the wealthiest buyerswhich are usually immune to volatile economic conditions.

China’s difficult market

Less growth was recorded in its area Asia-Pacificexcluding Japan, where the sales increased by 1%. Performance was fairly consistent across the region, Eric du Halgouet, Hermes’ financial vice president, told reporters.

“In China, there was no break in the trends, we are still facing the lower move that started after the Chinese New Year, but there was no further declinedu Halgouet said.

He added that Hermes is making up for the lower traffic through other means, selling jewelry, leather goods and clothing for men and women.

Du Halgouet said the group would continue to invest in China after opening a store in Shenzhen’s Mixc mall on Wednesday, with plans to a new flagship in Beijing next year.

Hermes shares have ticked up up almost 9% since the beginning of the year, surpassing their rivals, with the LVMH to decline by almost 15%, the Moncler to fall 3.3 percent and Kering PRTP.PA, which is working to turn around Gucci, by 40 percent.

Luxury bellwether LVMH missed expectations last week and saw Chinese consumer confidence fall to near COVID-era lows, with demand for fashion falling in the quarter.

Late on Wednesday, Kering PRTP.PA warned that its 2024 operating income would almost halve to the lowest level in years, as weak demand in China intensified the struggles of the French luxury group’s main Gucci label.

Showing limits to resilience, executives earlier this year said Hermes was seeing slightly less traffic from aspirational customers, affecting higher-volume products such as fashion accessories such as silk scarves.