Hermès sales stay strong, prices set to rise
French luxury group Hermès said on Thursday that it enjoyed a strong Q3 with sales up 32.5%, or 24% at constant exchange rates. Sales reached €3.136 billion in the three months to the end of September, with strong growth in all its business lines.
Executive chairman Axel Dumas said the company is confident for the future and has an ambitious goal for revenue growth at constant exchange rates.
But the company also said it would most likely increase prices by between 5% and 10% next year, which is a faster rate than in the past. Its prices have risen by up to 2% in previous years, although in 2022 they’ve increased by 4%.
Overall in this financial year so far, consolidated revenue reached €8.611 billion, up 30% at current exchange rates and 24% at constant exchange rates.
Sales in the group’s stores at comparable exchange rates have risen 23% and “benefited from the reinforcement of our exclusive distribution network and online sales”. Wholesale rose 26% and reflected the resumption of travel retail.
Asia sales excluding Japan were up 21% with a 34% rise in the third quarter alone, as the region continued its strong momentum. Sales in Greater China picked up strongly, despite temporary closures due to Covid measures mainly in Macau, Chengdu and Dalian in July and August.
Sales were “particularly sustained" in Singapore, Australia, Thailand and Korea, helped by new and renovated stores.
Meanwhile in Japan, sales rose 21% on the back of high-spending local clients. In Ginza, the Men’s universe floor re-opened in September after renovation. And in June, the La Fabrique de la légèreté exhibition, featuring the theme of the year, was very well received in Tokyo.
Americas sales are up 28% so far and the US benefited from new stores, as well as special events like the HermèsFit event in Los Angeles in July, highlighting silk, shoes, small leather goods and fashion accessories collections.
Europe excluding France was up 25% and France rose 28%, also boosted by local shopper spending. Tourist flows also recovered, especially in France, the UK and Italy.
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