Parisian luxury house Hermès has shown impressive sales growth in the face of a challenging economic and sanitary environment caused by the Covid-19 crisis. In the first quarter of 2021, the brand recorded a 44% increase in sales compared to the same period in 2020, generating a revenue of 2.08 billion euros. This also represents a 33% increase compared to the pre-pandemic first quarter of 2019.
Axel Dumas, the CEO of Hermès, attributed this strong sales growth to the brand’s responsible artisanal model and the desirability of its collections among customers worldwide. The increase in sales was primarily driven by a significant surge in activity in the brand’s physical stores, which experienced a 41% rise compared to the first quarter of 2019. This result was supported by Hermès’ strategy of opening and renovating stores across the globe. While no specific details about online sales growth were disclosed, the company did mention “three-digit growth in all regions.”
Asia, excluding Japan, saw the highest increase in luxury consumption, with a sales growth of 94% compared to the first quarter of 2020, primarily fueled by mainland China. The growth trend in the Americas, which began in late 2020, also continued with a 23% increase in sales. However, Europe excluding France (-1%) and France (-9%) experienced declines due to ongoing restrictions, although the brand noted the loyalty of local customers and strong growth in online sales partly mitigated this.
Hermès witnessed favorable dynamics across all segments. The watch division saw a 96% increase in sales, while the clothing and accessories division recorded a 51% growth in the first quarter. The leather goods and saddlery division, as well as the silk division, both reported a 34% increase in sales. To meet the growing demand in the leather goods category, Hermès plans to open new stores dedicated to this segment. The brand also recently unveiled its first bag made partly from Sylvania, a leather alternative made from mushroom fibers.
The silk and textiles segment witnessed a 34% growth, while perfumes and beauty products experienced a 21% increase, primarily driven by the launch of H24, Hermès’ first men’s fragrance in 15 years. Overall, Hermès’ strong sales growth in the first quarter of 2021 showcases the brand’s resilience and appeal in the luxury market.
Here are two relevant links for further information:
1. Hermès Official Website
2. How Hermès is Treating the Coronavirus Crisis
