Luxury brand Hermès has released its financial results for the third quarter of 2019, revealing a revenue of over €1.7 billion, representing a growth of 15% at constant exchange rates. The strong performance was largely driven by the Asian market, with the Asia (excluding Japan) region reporting a revenue increase of 21.8%. This success can be attributed to the expansion of the hermes.cn website.
While the luxury industry in Hong Kong has been negatively impacted by social and economic unrest, the mainland Chinese market has continued to thrive. Japan also saw growth of 15.2%, fueled by anticipation of purchases due to the upcoming increase in VAT. The Americas reported a growth of 10.7%, while Europe (excluding France) saw a growth of 10.1%. In France, growth reached 10.4%, with Hermès specifically highlighting the strong performance of its Parisian boutiques throughout the year.
Hermès’ brick-and-mortar retail strategy has proven successful, with a sales growth of 14% in physical stores since January. The Clothing and Accessories segment showed the highest growth rate during the third quarter, with an increase of 21.5% at constant exchange rates. The Silk and Textiles division also performed well, reporting a growth of 17.1%. The Watchmaking segment and the Leather Goods division saw growth rates of 14.3% and 11.5% respectively.
To support its production of bags and leather articles, Hermès plans to unveil a new leather goods production facility in the Ardennes in 2022. Overall, the luxury brand’s revenue for the first nine months of 2019 surpassed €5 billion, representing a growth of 13% at constant exchange rates. The Group’s annual results are expected to be announced on February 26, 2020.
Useful links:
– Hermès Official Website
– Business of Fashion
