Companies

Hermès reports solid performance

Oct 27, 2023 France

From January to September 2023, the French-based luxury group’s revenue reached 10.1 billion euros, increasing from the 8.6 billion euros recorded in the same period of last year

In the first nine months of the year, Hermès posted a revenue of 10.06 billion euros, up by 22% at constant exchange rates and by 17% at current exchange rates, on a comparable basis to the same months of 2022. In the third quarter alone, sales grew by 16% at constant exchange rates, totalling 3.37 billion euros, as compared to the prior year’s period.

“The solid performance in the third quarter reflects the desirability of our collections all over the world, with still a sustained momentum in Asia and in the Americas. More than ever, in an uncertain global environment, we are reinforcing our investments and our teams to support growth”, commented Axel Dumas, Executive Chairman of the group.

Geographical Areas

The luxury group recorded a sales increase of 21.2% at constant exchange rates in Asia (excluding Japan) in the first nine months of 2023, reaching 4.87 billion euros, on a comparable basis to a similar period of the previous year. In the third quarter, Hermès sales in the region amounted to 1.56 billion euros, up by 10.2% at constant exchange rates year-over-year.

Japan “confirmed its solid growth” during the first nine months of the year, with sales increasing by 25.4% at constant exchange rates to 939 million euros, as compared to a similar period in 2022. The performance in the third quarter contributed 304 million euros to the total sales in this market, up by 24.1% from the same quarter last year.

The Americas’ region has been growing steadily since January. At the end of September, Hermès sales in this continent totalled 1.78 billion euros, which reflects an increase of 20.1%, on a comparable basis to the first nine months of the prior year. In the third quarter of the year, the group’s sales rose by 20.4% year-over-year, reaching 600 million euros.

Hermès noted that sales in Europe excluding France and France “were particularly robust” in the first three quarters of 2023, with sales rising by 20.0% and 21.6% to 1.33 billion euros and 916 billion euros, respectively, as compared to a similar period of the previous year.

Leather Goods & Saddlery

The Leather Goods and Saddlery business line “benefitted from a very sustained demand and high desirability”. In the first nine months of the current fiscal year, sales in this segment increased by 19.0% at constant exchange rates, on a comparable basis to the same period of 2022, amounting to 4.18 billion euros. In the third quarter, sales totalled 1.39 billion euros, up by 15.8% at constant exchange rates from the same quarter last year.

Image Credits: fashiongonerogue.com

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