Hermès Sales Soar: All Lines Report Impressive Momentum.
Hermès Lines Hit a Home Run: Strong Momentum Across the Board.
The Hermès luxury group has released their financial report for the first quarter of 2023. In this report, they reveal that their consolidated revenue reached €3,380 million, which is an increase of 23% at constant exchange rates and 22% at current exchange rates compared to the same period last year. This increase in sales was seen across all the geographical areas and business lines.
The company’s sales were strong in all regions, with Asia (excluding Japan), Japan, the Americas, Europe (excluding France), and France all experiencing good growth. Sales in Hermès stores and wholesale activities were up by 23% and 26%, respectively. The company also benefited from the reopening of the Nanjing store in China, the celebration of the Men’s Spring-Summer 2023 collection in Tokyo Bay, and the opening of a new store in Naples, Florida.
All of Hermès’ business lines saw strong growth in sales, with the Leather Goods and Saddlery business line up by 19%, Ready-to-Wear and Accessories up by 34%, Silk and Textiles up by 20%, Perfume and Beauty up by 7%, Watches up by 25%, and Other Business Lines up by 28%. The company continues to increase production capacity with the opening of new leather goods production facilities in Louviers and la Sormonne, reinforcing its local anchoring in France and developing employment and training.
In summary, Hermès has had a very successful first quarter, with strong growth across all geographical areas and business lines, demonstrating the creative strength and singularity of the brand.
Sales by Hermès business line at the end of March:
At the end of March 2023, all the business lines confirmed strong momentum and achieved very good performances.
The growth in Hermès Leather Goods and Saddlery (+19%) was driven by sustained demand across all the geographical areas. The increase in production capacities continued with the projects in Riom (Puy-de-Dôme), L’Isle-d’Espagnac (Charente) and Loupes (Gironde), which will reinforce the nine centres of expertise located across the national territory. A new leather goods production facility was inaugurated in Louviers (Eure) at the beginning of April, and a new site will open in la Sormonne (Ardennes) in May. Hermès continues to reinforce its local anchoring in France and to develop employment and training.
Hermès Ready-to-Wear and Accessories business line (+34%) pursued its strong growth, thanks to the success of the ready-to-wear, fashion accessories and shoes. The Spring-Summer 2023 collections were given a great welcome. Demand was high for fashion accessories and shoes, with models displaying the abundance of the house’s savoir-faire.
Hermès Silk and Textiles business line (+20%) recorded a sustained growth, supported by constantly renewed creation and men’s and women’s collections enriched with outstanding materials. Scarves transformed into kites and spread their colours on the breeze at the outdoor Kite Festival event in Dubai and Argentina, which will continue to tour the world in 2023.
Hermès Perfume and Beauty (+7%) also pursued their development. A new eau de toilette, Un Jardin à Cythère, was unveiled in February, inspired by a Mediterranean garden in a refillable bottle. In February, Hermès Beauty launched a new summer limited edition of Rouge Hermès, featuring contrasting and sunny shades.
Hermès Watches (+25%) confirmed its outstanding performance, displaying creativity, style and remarkable watch- making savoir-faire, in both the complication models like the Arceau, Le temps voyageur, and the house’s classic models. The H08 line, which this year welcomes a new complication and coloured versions, was given a tremendous welcome at the Watches and Wonders international exhibition held in Geneva in March.
Other Hermès Business Lines (+28%), which include Jewellery and Homeware, continued on their strong progression, highlighting the creative strength and singularity of the house.