Hermès, the luxury French company, has reported a strong first quarter performance, with all of its business divisions showing significant growth. The company experienced a 44% increase in revenues at constant exchange rates and a 38% increase at current exchange rates. This growth was largely driven by the Asian market, where revenues almost doubled year-on-year. Compared to the first quarter of 2019, revenue growth reached 33%.

Hermès’ own shops performed exceptionally well, with sales rising by 51% compared to the previous year and 41% compared to two years ago. However, the wholesale sector experienced a 2% decline due to the impact of travel retail. Sales in Asia, excluding Japan, saw an impressive 94% increase, with China standing out as a star performer. Other countries in the region, including Korea, Thailand, Singapore, and Australia, also reported strong business performance. Despite the implementation of new Covid measures, sales in Japan rose by 20%.

The United States also made a significant contribution to Hermès’ success, with a 23% increase in sales. This helped offset the negative impact of new waves of Covid and lockdowns in Europe, where revenues were down by 1%. France, in particular, experienced a 9% decline in sales due to store closures.

Hermès’ online presence proved to be a key strength, with e-sales doubling or more in all regions. The company expects web sales to reach over €1 billion in the near future.

Each of Hermès’ business divisions showed impressive performance. Sales in the Leather Goods and Saddlery division rose by 34%, reaching nearly €989 million. The Ready-to-Wear and Accessories division saw a revenue increase of 51%, surpassing €473 million. Silk and Textiles had a 34% revenue growth, exceeding €148 million. Perfumes and Beauty experienced a 21% increase, reaching almost €99 million. Watches showed significant growth, with a 96% increase to over €78 million. The Other category, which includes homewares and jewelry, saw a 93% rise in revenue, reaching nearly €69 million.

Overall, Hermès has shown resilience in navigating the crisis compared to its competitors. The company’s success in Asia, the United States, and online sales has driven remarkable growth in the first quarter of this year. With its strong performance across various business lines, Hermès continues to establish itself as a leader in the luxury market.

Sources:
Hermès Official Website
Reuters