Hermès, the renowned luxury brand, has reported impressive financial results for the first quarter of 2023. With a revenue of €3.38 billion, the brand continues its upward trajectory by achieving a 23% growth in comparison to the same period last year. This follows a successful year in 2022, where Hermès witnessed a 23% increase in revenue.
Axel Dumas, the CEO of Hermès, attributed this success to the brand’s collections resonating with customers around the world. He expressed his delight in the loyalty of their customers and recognized the strong performance achieved in the first quarter of 2023.
The brand experienced significant growth in all its geographic regions during this period. The recovery of tourist flows, similar to competitor LVMH, played a crucial role in this growth. Hermès boutiques witnessed a notable increase in footfall, leading to a 23% rise in in-store sales. France and the rest of Europe saw considerable growth, with increases of 28% and 21% respectively. Asia also recorded a sales increase of 23%, while America, where the brand recently expanded with the opening of a new store in Florida, grew by 19%.
The brand’s success can also be attributed to its strengthened production capabilities. The Leather Goods department, one of Hermès’ flagship categories, experienced a 19% increase in sales. This growth has been supported by the establishment of new workshops in Louviers, Eure, and an upcoming manufacturing facility in the Ardennes. Additionally, Hermès has announced the opening of new leather goods locations in Puy-de-Dôme, Charente, and Gironde.
Within Hermès’ product categories, Clothing & Accessories and Watchmaking witnessed the highest increases, at 34% and 25% respectively. Silks & Textiles also saw a significant growth of 20%. The Fragrance and Beauty category experienced a more modest increase of 7%, but Hermès plans to unveil a new chapter in its makeup line later this year.
To sustain its growth, the Hermès Group has announced plans to accelerate its recruitment efforts both in France and internationally throughout the year. With a workforce of 19,700 employees, the brand aims to continue its expansion and meet the growing demands of its global customer base.
Useful links:
1. Hermès Official Website
2. LVMH Official Website
