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Hermès posts H1 revenue growth of 11 percent

By Prachi Singh

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Management

The Hermès Group said that its consolidated revenue amounted to 2,853 million euros (3,323 million dollars) in the first half of 2018, up 11 percent at constant exchange and 5 percent at current exchange rates. The company added that it witnessed strong store sales growth 11 percent at constant exchange rates.

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Revenues increased 12 percent at constant and 7 percent at current exchange to 1,459.6 million euros (1,700 million dollars) in the second quarter, driven by the continuing momentum across all business lines and in all geographical areas.

Hermès reports strong sales momentum across geographies

In the first half of 2018, Hermès said, revenue increased in all geographical areas worldwide: Asia excluding Japan reported 15 percent rise, with positive momentum in continental China and the whole region. The company added that the group also benefited from the January opening of the Landmark Prince’s store in Hong Kong, while the Changsha store in China opened in May. Revenues in Japan increased 7 percent and 12 percent in America. In May, the group opened its 34th store in the USA, at Palo Alto in the heart of Silicon Valley, while the Cancùn store opened in Mexico at the end of March.

Sales in Europe excluding France rose 7 percent and France posted an 8 percent growth. The Monaco and Nice stores reopened in June, and the third store in Istanbul, in Emaar Square, opened in May. The new Hermès website was also launched in Europe at the end of March.

Hermès: All business segments perform well

Growth in leather goods and saddlery was 8 percent with demand for both: for the Maison's classics and other models, such as the Roulis, Lindy and Cinhetic bags remaining high. The company’s production capacities continued to increase, with the opening of the Manufacture de l’Allan in April, completing the craftsmanship production capacities in Franche-Comté around the Seloncourt and Héricourt sites, and the start of the Guyenne and Montereau production site projects, scheduled for completion in 2020.

The ready-to-wear and accessories division sales rose 17 percent, while the silk and textiles business line sales increased 7 percent. The company added that driven by the successes of Terre d'Hermès and of Twilly d'Hermès, perfumes recorded a 15 percent increase. The watches business line rose 9 percent and other Hermès business lines, which encompass Jewellery, Art of Living and Hermès Table Arts, recorded 24 percent growth over the period.

For more recent news on the business, collections and executive changes of Hermès, click here.

Picture:Facebook/Hermès

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