During the period from July to September, luxury brand Hermès experienced significant sales growth, with figures soaring by +40% compared to the third quarter of 2019 and +31% compared to the same period in 2020. These impressive results confirm the brand’s strong momentum as it emerges from the challenges posed by the pandemic. Over the course of the first nine months of 2021, Hermès’ revenue increased by +35% compared to 2019, reaching a total of €6.602 billion. The third quarter alone saw consolidated revenue hit €2.367 billion, marking a standout performance in what has been described as an “atypical” year by Hermès CEO Axel Dumas. Dumas attributes this success to the brand’s strategic investment policy and its commitment to expanding job opportunities.
One of the key factors contributing to Hermès’ growth is the implementation of various initiatives. The establishment of the Hermès School of Expertise, the opening of new workshops, and the enhancement and renovation of its store network have all played a significant role in driving the brand’s success. Commenting on these developments, Axel Dumas emphasizes the importance of Hermès’ diverse range of crafts and its global presence, which enable the brand to navigate the challenges presented by an unstable world. He expresses the brand’s commitment to producing high-quality, beautiful, and sustainable objects.
In terms of sales channels, Hermès has experienced remarkable growth in its in-store sales, which have risen by +43% compared to pre-pandemic levels. The Asia excluding Japan region, in particular, has seen a remarkable uptick, with sales soaring by +69%. Local customers have been a driving force behind this surge in demand.
Examining specific product categories, Hermès has witnessed strong growth across various segments. Clothing and accessories sales have increased by +43% since the beginning of the year compared to the same period in 2019. The silk and textiles division has seen a growth of +10%, while the fragrance and beauty segment has experienced a surge of +18% over the past two years. This growth has been partly fueled by the recent expansion of the brand’s makeup line to include nail polishes, as well as the successful introduction of these products in the Chinese e-commerce market.
The watchmaking sector has been a standout performer for Hermès, with an impressive +77% increase in revenue compared to the first nine months of 2019. Other crafts, including lifestyle and jewelry, have also exhibited notable growth, registering a remarkable increase of +98%.
Overall, Hermès’ strong performance in the third quarter and throughout the year reflects its resilience and ability to adapt to changing market dynamics. The brand’s focus on quality craftsmanship, strategic investments, and global presence has enabled it to thrive despite the challenges posed by the pandemic. Moving forward, Hermès is well-positioned to continue its success and cement its position as a leading luxury brand.
Useful links:
1. Hermès Official Website
2. Hermès Revenue Statistics
