“The 2023 first half results reflect the strength of the pillars of the artisanal model of the house: quality of materials, exceptional know-how and abundant creativity. To support this growth, we continue to invest in our production capacities, in the expansion of our network, while accelerating job creation and training in all of the group's métiers”, commented Axel Dumas, Executive Chairman of Hermès.

First Half Results

In the first half of the current fiscal year, the company's sales reached 6.70 billion euros, reflecting a 25% growth at constant exchange rates and a 22% increase at current exchange rates, on a comparable basis to the same period of last year. In the second quarter alone, sales totalled 3.32 billion euros, up by 28% at constant exchange rates and by 22% at current exchange rates, “with a strong momentum across all business lines and all regions”.

Indeed, in the first semester of 2023, the Leather Goods and Saddlery business line recorded a sales growth of 21% at constant exchange rates and 18% at current exchange rates, which amounted to 2.78 billion euros, as compared to the first half of 2022. Hermès highlighted that this segment benefited “from sustained demand and a favourable comparison basis in the 2^nd quarter, notably in Greater China”.

By region, at the end of June, the group's sales in the Asia Pacific grew by 28% at constant exchange rates and 24% at current exchange rates year-over-year to 3.29 billion euros, as compared to a similar period of the previous year, continuing its “strong momentum in Greater China”. In Japan, Hermès sales totalled 636 million euros, reflecting a 26% increase at constant exchange rates and 16% at current exchange rates over the first half of 2022.

The French-based luxury group also had a positive performance in Europe during the first semester of the year, with sales growing year-over-year by 22% at constant exchange rates and 21% at the current exchange rates, reaching 1.42 billion euros. In France alone, sales amounted to 593 million euros, up by 24% year-over-year at both constant and current exchange rates. In the Americas, Hermès sales amounted to 1.18 billion euros in the first half, which indicates a 20% and 21% growth at constant and current exchanges, respectively.

Hermès also reported that the recurring operating income increased by 28% in the first half of 2023 to 2.95 billion euros, on a comparable basis to the same period of the prior year, reaching a recurring operating profitability of 44%. In addition, its consolidated net profit reached 2.23 billion euros, up by 36% from 1.64 billion euros recorded in the first semester of 2022.