Companies

Hermès posts strong first quarter

Apr 19, 2023 France

The French-based luxury group posted a revenue growth of 23% at constant exchange rates and 22% at current exchange rates in the first quarter of 2023, year-over-year, reaching 3.38 billion euros

“The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers. We are proud to strengthen our production capacities and consolidate our artisanal model. The inauguration of our 21^stleather goods workshop in Louviers at the beginning of April is a recent example”, commented Axel Dumas, Executive Chairman of Hermès.

Indeed, first quarter sales in the company's Leather Goods and Saddlery business line increased by 19% at constant exchange rates, on a comparable basis to the same period of the prior year, “driven by sustained demand across all the geographical areas”. The company added that it will continue expanding its production capacities, with a new leather goods production site due to open in May in la Sormonne (Ardennes).

Sales By Geographical Area

(at constant exchange rates unless otherwise indicated)

As of the 31^st of Match, Hermès' group stores sales increased by 23% at constant exchange rates and wholesale activities grew by 26% at constant exchange rates, benefiting from the recovery in travel retail, as compared to the same period of last year.

In the first quarter of the current fiscal year, the Asia region (excluding Japan) recorded a sales growth of 23%, driven by strong momentum in Greater China, as well as in Singapore, Thailand, and Australia, on a comparable basis to a similar period in 2022. In Japan, the company's sales were up by 26% in this period due to the loyalty of local customers.

Hermès also reported a sustained performance in the Americas region, with sales increasing by 19% in the first three months of 2023, as compared to the same period of the prior year, mainly to the “good momentum” experienced in the US.

In Europe, excluding France, the luxury group saw its sales rise by 21% in the first quarter of the year, while in France they increased by 28%, on a comparable basis to the first quarter of 2022. This “very solid growth, particularly in the UK and Italy”, was led by the increase in tourist flows.

Image Credits: spottedfashion.com

France Hermès Leather Luxury Quarter Results Results