China demand drives revenue growth at Hermès

The Hermès group’s consolidated revenue amounted to 5,012 million euros (5,578 million dollars) at the end of September 2019, up 16 percent at current exchange and 13 percent at constant exchange rates. The company said, 14 percent sales growth in the group’s stores constant exchange rates, confirms the trends seen over the first six months of the year. The 18 percent growth at current exchanges and 15 percent at constant exchange in the third quarter, Hermès adde, benefited from the sustained momentum in all the geographical areas.

Commenting on the company’s performance, Axel Dumas, Executive Chairman of Hermès, said in a statement: “Despite an uncertain international environment, Hermès is experiencing exceptional sales growth over the first nine months reflecting our creative drive, excellent know-how and customers’ adhesion.”

Hermès reports positive momentum across geographies

The company’s sales in Asia excluding Japan were up 19 percent driven by mainland China, and from strong growth in the area, despite the impact of events in Hong Kong. Sales increased in all countries in the area. In China, Hermès opened its 26th store in Xiamen in July, and continued to successfully develop the new commercial platform Hermes.cn. The Siam Paragon store reopened in Bangkok. Sales in Japan increased 12 percent. The Iwataya store in Fukuoka and the Nihombashi store in Tokyo were extended and renovated during the period.

Revenues in America rose 10 percent. Hermès opened a new store in Vancouver, Canada in September, and the Masaryk store in the centre of Mexico reopened in July. Europe excluding France witnessed 9 percent rise and sales in France were up 6 percent with in robust growth in the UK, in Italy and in the Parisian stores.

The company reported 12 percent growth in leather goods and saddler, while the ready-to-wear and accessories division posted 17 percent revenue growth. The silk and textiles business line improved 8 percent and sales of perfumes were up 3 percent. The watches business line saw sales growth of 14 percent and sales at other Hermès business lines rose 22 percent, which encompass jewellery, Art of Living and Hermès Table Arts.

Picture:Hermes website