Hermès posts 22 percent increase in Q1 sales

The Hermès group's consolidated revenue reached 3.38 billion euros in the first quarter of 2023, up 23 percent at constant exchange rates and up 22 percent at current exchange rates.

The company said that the sales were particularly dynamic in all geographical areas and across all the business lines. In the medium-term, despite the economic, geopolitical and monetary uncertainties globally, Hermès confirmed its goal for revenue growth at constant exchange rates.

Hermès executive chair Axel Dumas said in a statement: “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.”

At the end of March 2023, sales increased by 23 percent at constant exchange rates in group stores and by 26 percent in wholesale activities, which benefited from the recovery in travel retail.

Asia, excluding Japan, rose 23 percent, driven by a positive Chinese New Year trading. There was also strong momentum in Greater China and across the wider region, particularly in Singapore, Thailand, as well as Australia. Japan recorded 26 percent sales growth.

Strong growth in US

The Americas revenues increased 19 percent driven by good momentum in the US. A new store opened during the quarter in Naples, Florida, in the Gulf of Mexico - the fortieth store in the US. Europe, excluding France, increased 21 percent with particularly good growth in the UK and Italy, driven by the increase in tourist flows. France revenue rose by 28 percent.

The company further said that the 19 percent growth in leather goods and saddlery was driven by sustained demand across all geographical areas. The increase in production capacities continued with the projects in Riom (Puy-de-Dôme), L’Isle-d’Espagnac (Charente) and Loupes (Gironde).

A new leather goods production facility was also inaugurated in Louviers (Eure) at the beginning of April, and a new site will open in la Sormonne (Ardennes) in May.

The ready-to-wear and accessories business line rose 34 percent, while the silk and textiles business line increased 20 percent.

Perfume and beauty sales rose 7 percent, while the watches division posted a 25 percent growth. Other Hermès business lines, which include jewellery and homeware, increased 28 percent.