Hermès, the renowned French luxury group, has reported impressive sales growth in the third quarter of this year. The company experienced a 32.5% increase in sales, or 24% at constant exchange rates, reaching €3.136 billion in the three months to the end of September. This growth was observed across all its business lines, showcasing the strong performance of the brand.

Axel Dumas, the executive chairman of Hermès, expressed his confidence in the company’s future and set an ambitious goal for revenue growth at constant exchange rates. However, he also announced that prices are set to rise by 5% to 10% next year, which is a faster rate compared to previous years where prices have only increased by up to 2%. Notably, prices have already risen by 4% in 2022.

Despite the forthcoming price increases, Hermès has achieved remarkable financial performance this year. Consolidated revenue for the financial year to date has reached €8.611 billion, up 30% at current exchange rates and 24% at constant exchange rates. The company’s stores have seen a 23% rise in sales, benefiting from the continuous development of its exclusive distribution network and online sales. Wholesale has also experienced a substantial increase of 26%, primarily due to the resumption of travel retail.

Analyzing regional performance, sales in Asia excluding Japan witnessed a 21% growth, with an impressive 34% rise in the third quarter alone, indicating strong momentum in the region. Despite temporary closures due to COVID-19 measures, Greater China achieved significant growth. Sales performed exceptionally well in Singapore, Australia, Thailand, and Korea, attributed to the opening of new and renovated stores.

In Japan, sales rose by 21%, driven by local high-spending customers. The reopening of the Men’s universe floor in Ginza and the success of the La Fabrique de la légèreté exhibition in Tokyo contributed to this growth. The Americas experienced a 28% increase in sales, with the US benefitting from the opening of new stores and hosting special events like the HermèsFit event in Los Angeles.

Europe, excluding France, saw a notable sales increase of 25%, while France itself witnessed a rise of 28%. Both regions profited from local shopper spending, and tourist flows have also started to recover, particularly in France, the UK, and Italy.

Overall, Hermès is performing exceedingly well and maintains its confidence in the future. The company’s strong sales growth in the third quarter, along with the plans for price increases, suggest a positive outlook for the luxury brand.

Sources:
1. Hermès Official Website
2. Reuters – Hermès sees prices rise by 5-10% in 2023