After an impressive first quarter with a 23% increase, luxury brand Hermès continues to excel in the luxury market with a remarkable start to the year. Sales have reached a staggering 6.7 billion euros, demonstrating the Maison’s strong performance in the first half of the year. CEO Alex Dumas presented these exceptional results and took the opportunity to express gratitude for the longstanding relationship between Hermès and Jane Birkin.
During the first six months, Hermès achieved a remarkable 25% growth in revenue at constant rates, amounting to 6.698 billion euros. The brand’s appeal has transcended all aspects of its business, with sales figures exceeding or equaling 20% across its various geographical markets. This success can be attributed to favorable comparisons, particularly in China, but CEO Axel Dumas also emphasized the significant influence of the expanding middle class in Asia and the United States. These two regions accounted for 59% and 18% of Hermès’ revenue respectively.
In terms of specific categories, the Clothing and Accessories segment experienced the highest growth with a 35% increase, followed by Watchmaking with a 24% increase. The Silk and Textiles division also saw a commendable growth of 22% thanks to the Maison’s strengthened production capabilities.
Hermès’ Leather Goods department showed a notable growth of 21% and contributed to 41.5% of this semester’s revenue. To support this traditional activity, the Maison has recently opened three leather goods stores and announced the upcoming opening of four new manufacturing facilities in France. With 80% of its products manufactured in France, Hermès is committed to investing in its production chain and distribution network. This year, the brand aims to open, expand, and renovate approximately twenty physical stores while also focusing on the momentum in e-commerce.
Furthermore, Hermès has increased its workforce by hiring 900 people since the beginning of the year and has plans to accelerate its recruitment policy in the coming months.
Useful Links:
– Hermès Official Website
– Forbes Article on Hermès’ Growth
