Hermès, the renowned French luxury brand, set a new sales record in 2018, nearing the impressive milestone of 6 billion euros. This achievement was largely driven by the increasing popularity of its signature bags, particularly in key markets such as China and other regions worldwide. The sales of leather goods, including the highly sought-after bags, saw a significant uptick of 9.4 percent, highlighting the brand’s enduring appeal and craftsmanship.
Surpassing analyst expectations, the 7.5 percent growth from the previous year was hailed by Hermès as “particularly robust,” fueled by strong demand rather than fluctuating currency effects that posed challenges throughout the year. With a consolidated sales figure of 5.966 billion euros, Hermès showcased a solid performance in a competitive market.
CEO Axel Dumas expressed delight at the brand’s success, emphasizing the timeless allure of Hermès products that underpins its commitment to sustainable growth. Notably, Hermès experienced notable growth in China and South Asia, recording a remarkable 14 percent increase in sales at constant exchange rates.
The brand’s strategic investment in expanding production capacity for leather goods, a key revenue driver representing half of its sales, paid off with a notable increase in sales. The ready-to-wear and accessories division also saw a substantial growth of 14.1 percent, now contributing over a fifth of total sales.
Despite the uncertainties posed by global trade tensions, Hermès demonstrated resilience with a solid 10.1 percent increase in reported sales during the fourth quarter. This positive performance was reflected in the stock market, as Hermès shares rose by 1.4 percent on the Paris stock exchange, outpacing the stagnant CAC 40 index.
In summary, Hermès’ exceptional sales performance in 2018 highlights its enduring prestige and successful growth strategies, positioning the brand for continued success in the luxury market.
Useful links:
1. Hermès Shows What It Takes to Excel in the Luxury Market
2. China Demand Boosts Hermès Sales to Record High
