Key facts
- Resale prices for unworn Birkin bags have fallen by over $6,000 from their 2022 peak.
- The average resale price for a Birkin 25 bag is now 1.7 times its retail tag, down from 2.6 times in 2022.
- Hermes' shares have declined nearly 40% this year.
- The number of Birkin handbags listed on the secondary market is six to seven times higher than pre-pandemic levels.
- Hermes' expected quarterly sales growth of 5.2% would be its weakest in six years.
The resale value of Hermes' Birkin bags has declined significantly, with prices dropping by over $6,000 from their 2022 peak, according to resellers. This trend is attributed to an increasing supply in the second-hand market, which is eroding the scarcity-driven exclusivity that has been central to the brand's success and profitability. Resellers report that acquiring Birkins is no longer as challenging, and making money on resales has become more difficult. Bernstein noted that Birkin 25 resale prices averaged 1.7 times retail in the third quarter, down from 2.6 times in 2022. Hermes, which declined to comment, has gradually expanded production, opening one workshop per year on average, while resale platforms have made it easier to sell bags. Despite this, some resellers like Sarah Davis of Fashionphile report firm prices on their platform. Hermes' shares have lost nearly 40% this year, and UBS analysts downgraded the stock to 'sell', citing the growing secondary market supply.