Hermès, the luxury group known for its high-end fashion and accessories, has released its results for the first quarter of 2019. The key takeaway from the report is the company’s impressive growth across all geographic regions.
CEO Axel Dumas highlighted the success of the company’s collections, stating that Hermès is experiencing an acceleration in sales in the first quarter. This growth is a continuation of a positive trend, particularly in China.
According to a press release published on April 25th, Hermès reported a consolidated revenue of €1.610 billion, representing a growth of 16% at current exchange rates and 12% at constant exchange rates. This upward trend was seen in all geographic regions, starting with Asia (excluding Japan) which saw a performance increase of 17% at constant exchange rates, driven by mainland China. The company credits the growth in Asia to the opening and expansion of several boutiques, as well as the launch of a new digital platform. Japan and the United States also performed well, with respective growths of 10%. Europe experienced a growth of 9.5%, driven by the United Kingdom, while social movements in France slowed the company’s growth to 1% in the first quarter.
Hermès attributes these positive results to the success of its boutiques, which saw a global growth of 13% in the first quarter.
The company also reported growth in all market segments. Watchmaking saw a strong performance with a growth of 22%, thanks to the launch of the Galop d’Hermès watch. Clothing and accessories followed with a growth of 13%, while Leather Goods-Saddlery experienced “particularly strong” growth with a growth of 12.5%. To meet demand, Hermès plans to increase its production capacity and will launch three new leather goods in France by 2021. Perfumes also saw growth of 3%, with the Terre d’Hermès fragrance performing well.
Hermès is starting the year strong and is focused on innovation, with plans to open a boutique targeting the younger generation in New York’s Meatpacking District in early April. There are also rumors of the company entering the Beauty market, with further information expected on July 23rd.
Overall, Hermès’ first-quarter results reflect the strong performance of the luxury group across all geographic regions and market segments. The company’s focus on craftsmanship, innovation, and meeting customer demand has contributed to its growth.
Useful links:
1) [Hermès Official Website](https://www.hermes.com/)
2) [Hermès Financial News](https://www.hermes.com/us/en/financial-news/)
