Hermès Birkin resale values tumble as supply swells, threatening luxury scarcity model

Luxury-handbag reseller Cai Baochun stopped buying new Hermès Birkin bags after second-hand prices fell more than $6,000 from their 2022 high, fearing losses. Six of nine resellers surveyed said resale premiums have shrunk as more bags reach the market, while demand has softened. Unworn black Birkin 25 models now change hands for about £20,000-£24,000, compared with a retail price of £9,390 in Britain.

Hermès, which has tripled sales to €16 billion and posted a 41% operating margin, built its success on limited supply, but the surge in resale listings—now six to seven times pre-pandemic levels—has pressured that model. Analysts at UBS downgraded the stock, citing the growing secondary market, and the company is expected to report its weakest quarterly growth in six years. Some resellers, however, still see firm prices, citing renewed interest from figures like soccer star Erling Haaland.