Companies

Hermès sales grow in the first half

Aug 3, 2022 France

The French-based luxury group posted a revenue increase in the first half of 2022, with all geographical areas recording "strong growth". Performance in Greater China bounced back in June

In the first half of 2022, Hermès' consolidated revenue was up by 29% at current exchange rates and 23% at constant exchange rates, reaching 4.48 billion euros, as compared to the same period of 2021. In the second quarter, which ended on the 30^th of June, the group's sales amounted to 2.71 billion euros, up by 26% at current exchange rates and 30% at constant exchange rates, on a comparable basis to the second quarter of 2021.

"The very dynamic results over the first six months of the year testify to the growth across our 16 métiers and the strong desirability of our objects, designed by craftsmen with a sustainable approach, without compromising on quality. In a still unstable context, we are moving forward with confidence, faithful to our role as a responsible and committed company to our employees and our partners", commented Axel Dumas, Executive Chairman of Hermès

Sales by Geographical Area

(at comparable exchange rates, unless otherwise indicated)

In the first half of the current fiscal year, sales in the group's stores increased by 23%, benefitting "from the strengthening of the exclusive omnichannel network and online sales", and wholesale revenue grew by 25% driven by the resumption of travel retail.

Revenue generated in the Asia excluding Japan region in this period was up by 15%, due to a high level of activity across the region. The group added that sales in Greater China bounced back in June, "after being penalised by sanitary restrictions and store closures in April and May". Japan reported a "remarkable performance", with sales rising by 20%.

Meanwhile, the America region "continued its strong momentum", as of the 30^th of June. Sales in that region increased by 34%. Europe, excluding France, also recorded a growth of 34%, while in France sales rose by 41%, both "thanks to the loyalty of local clients and the return of tourists, particularly in France, the United Kingdom and Italy".

Sales by Business Lines

(at comparable exchange rates, unless otherwise indicated)

In the first six months of 2022, sales in the Leather Goods and Saddlery division were up by 12%, displaying a sustained demand and an increase in production capacities, in line with its annual goals.

The Watches (by 55%), Ready-to-Wear and Accessories (up by 36%), Other Hermès business Lines (Jewellery and Homeware) (up by 33%), and Silk and Textile business lines (up by 29%) performances stood out with "remarkable increases" in the first half of the year.

Image Credits: fashiongonerogue.com

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