- Prachi Singh |
In the first quarter of 2019, Hermès Group said that consolidated revenue amounted to 1,610 million euros (1,795.5 million dollars), up 16 percent at current exchange and 12 percent at constant exchange, driven by 13 percent sales growth in the group stores at constant exchange rates.
Commenting on the company’s first quarter results, Axel Dumas, Executive Chairman of Hermès, said in a statement: "Driven by the success of its collections among all its customers, Hermès achieved an acceleration of its sales over the first quarter, which shows the continuation of a dynamic trend, particularly in China."
Hermès sales performance by geographical regions
Over the first quarter 2019, the company said, all geographical areas recorded sustained growth. Sales in Asia excluding Japan improved 17 percent, with good sales growth driven by mainland China and two-digits growth in all other countries of the area. The company added that the group benefited from the success of the store extensions completed in 2018, in particular on the Shanghai IFC and Singapore Marina Bay Sands and a new store opening in Phuket Floresta, Thailand, in March.
Hermès is also continuing the roll-out of the new digital platform in Asia, launched in China last October. Sales in Japan rose 10 percent, while revenues in America also increased 10 percent following the opening of the 35th Hermès store in Orlando in March and the inauguration of a new store in New York's Meatpacking district early April. The group has announced the future location of the new Maison Hermès at 706 Madison Avenue in New York.
Sales in Europe excluding France improved 9.5 percent, driven particularly by the United Kingdom, while Hermès said, 1 percent growth in France was negatively impacted by events which continued at the start of the year.
The sales of the leather goods and saddlery business line rose 12.5 percent, while the ready-to-wear and accessories division posted a 13 percent sales rise, driven by the success of the ready-to-wear collections, as well as fashion accessories, particularly shoes. Sales of the silk and textiles business line recorded an increase of 2.5 percent, sales of perfumes were up 3 percent, while the watches business line improved 22 percent. Other Hermès business lines recorded 18 percent growth over the quarter, both in jewellery and in Hermès home products.