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Hermès reports strong sales growth across markets and business lines

By Prachi Singh

20 Oct 2022

Business

Image: Hermès

The Hermès group’s consolidated revenue amounted to 8,611 million euros at the end of September 2022, up 30 percent at current exchange rates and 24 percent at constant exchange rates compared to the same period in 2021.

In the third quarter, sales reached 3,136 million euros, up 32.5 percent at current exchange rates and 24 percent at constant exchange rates, with strong growth in all the business lines.

Commenting on the trading performance, Axel Dumas, executive chairman of Hermès, said: “The strong performance in the third quarter reflects the desirability of our collections all around the world and the relevance of our values. We move forward with confidence and caution while continuing to bolster our integrated model, rooted in France and committed to job creation.”

Hermès posts sales growth across geographies

At the end of September 2022, the company said, all the geographical areas posted very strong performances.

Sales in the group’s stores rose 23 percent, while wholesale activities registered growth of 26 percent reflecting the resumption of travel retail.

Asia excluding Japan rose 21 percent, driven by a 34 percent increase in the third quarter. The company added that sales in Greater China picked up strongly, despite temporary closures due to sanitary measures mainly in Macau, Chengdu and Dalian in July and August.

Hermès said, sales were particularly sustained in Singapore, Australia, Thailand and Korea. After the Pacific Place store in Hong Kong and One Central store in Macau at the beginning of the year, the Greenbelt Mall store in Manilla and Wuhan store in China reopened after renovation and extension in July.

Sales in Japan were up 21 percent. In Ginza, the Men’s universe floor re-opened in September after renovation. In June, the La Fabrique de la légèreté exhibition, featuring the theme of the year, was well received in Tokyo.

Americas registered a 28 percent increase. In the United States, after the opening of a new store in Austin in April, a new Maison was inaugurated at 706 Madison Avenue in New York at the end of September.

Europe excluding France increased 25 percent and France saw an increase of 28 percent, benefitted from the recovery in tourist flows, especially in France, the United Kingdom and Italy.

Hermès registered sales growth across business categories

Hermès reported 13 percent growth in the leather goods and saddlery division benefitted from the strong rebound in Greater China in the third quarter and sustained demand.

The company further said that the ready-to-wear and accessories division posted a 38 percent increase thanks to the success of the ready-to-wear, fashion accessories and footwear collections.

The silk and textiles business line achieved 27 percent growth, while perfume and beauty saw an 18 percent sales increase benefitted from the success of the latest launches such as the eau de parfum H24. The watches business line registered a 55 percent increase.

Other Hermès sectors consisting of homeware and jewellery reported 31 percent growth.

HERMES