Asia drives Hermes sales growth
Hermes sales rose 16 per cent in Asia (excluding Japan), largely due to rebounding market in Hong Kong and Macau.
Reporting its sales for the first quarter to March 31 overnight, the French luxury brand described its performance in Asia as “remarkable” citing a positive trend in continental China and “improvements in the context in Hong Kong and Macau”.
“The area also gained from the stores extension, in particular the Liat Towers in Singapore, and from the store opening in Chongqing in China.”
By comparison, Japan’s growth of just 2 per cent came despite the strengthening of the yen and and “a particularly high comparison basis”.
American sales rose 14 per cent and Europe, excluding France, by 9 per cent, aided by the opening of the Bocca di Leone store in Rome in October, and the extension and renovation of the London Sloane Street store and the Munich store in March. In France, Hermes sales grew 4 per cent.
Total group revenue was €1.352 billion in the first quarter, up 13.5 per cent at current exchange rates and 11.2 per cent at constant exchange rates.
“Hermès’strong performance continues thanks to the solidity of a well balanced growth model, based on the attractiveness of a rich and diversified business offering, and the healthy geographical distribution of its sales,” the company said in a statement.
Same-stores sales grew 13 per cent at constant exchange rates.
By category, leather goods and saddlery sales rose 15 per cent, ready-to-wear by 8 per cent, silk and textiles by 9 per cent and perfumes by 19 per cent, driven by the success of Terre d’Hermès and by the launch of Eau des Merveilles Bleue and Galop d’Hermès.
Watch sales fell 6 per cent, but other lines, including jewellery, Art of Living and Hermès Table Arts, recorded strong development over the quarter, rising 16 per cent.