In the first half of its 2022 fiscal year, the luxury house, Hermès, achieved impressive financial results. The company reported a revenue of 5.475 billion euros, representing a remarkable increase of 23%, or 29% at current exchange rates. This growth can be attributed to the brand’s expansion and increased production capacity in its key segments, resulting in dynamic markets and exceptional profitability.
Breaking down the revenue by geographic region, the Americas and Europe excluding France showed the strongest sales growth, both recording an impressive growth rate of 34%. This was fueled by both local demand and the gradual recovery of tourism in these regions. Notably, France experienced significant growth at 41%, driven by an increase in domestic demand. On the other hand, Asia excluding Japan saw a more modest growth rate of 15%. China, which had been impacted by strict health measures due to the resurgence of Covid-19, has experienced a strong rebound in sales since the end of May and early June.
A notable achievement for Hermès is the operating income of 2.304 billion euros, which resulted in a recurring operating margin reaching the highest level in the brand’s history, representing 42% of sales. These exceptional results highlight the brand’s strong growth in the first half of the year, with revenue increasing by 29% at current exchange rates and 23% at constant exchange rates.
In terms of product divisions, the Clothing and Accessories division experienced a significant sales increase of 36%. The Silks and Textiles division also stood out with a growth rate of 29%, benefiting from the company’s improved production capacity. The Leather Goods division, historically a strong performer for Hermès, achieved a growth rate of 12%, further supported by the production strengthening efforts. Additionally, the Fragrances and Beauty category saw a growth rate of 23%, driven by the successful launch of a range of complexion products. The Watchmaking division continued its strong growth momentum with a remarkable increase of 55%.
Hermès Group is also gaining recognition for its transparency in corporate information. The company currently employs 18,400 people, with over 62% of its workforce based in France.
