Hermès Q2 sales increase 13 percent amid luxury slowdown

Consolidated revenue in the first half of 2024 at Hermès amounted to 7.5 billion euros, up 15 percent at constant exchange and 12 percent at current exchange rates.

In the second quarter, group sales reached 3.7 billion euros, up 13 percent at constant exchange rates.

Recurring operating income was 3.1 billion euros and net profit reached 2.4 billion euros.

The company said in a statement that in a more challenging context, all the regions continued to show remarkable momentum, with the exception of Asia due to an inflection in traffic in Greater China.

Commenting on the group’s performance, Axel Dumas, executive chairman of Hermès, said: “The solid first-half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model. The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values.”

Hermès sales grow across core markets

The company added that Asia excluding Japan grew 10 percent in all the countries of the region. In June, the Lee Gardens store in Hong Kong reopened after expansion, after the reopening in May of the renovated Beijing SKP store in China. In April, the Mumbai Jio World Plaza store opened its doors, the house’s third address in India. Sales in Japan rose 22 percent. A new store was inaugurated in the Ginza district of Tokyo in June, following the Azabudai Hills store in February.

The Americas reported a 13 percent growth due to the continued solid momentum in the United States. A new store was inaugurated in Princeton, New Jersey, in April.

Hermès sales in Europe excluding France were up 18 percent and sales in France rose 15 percent. In France, the Nantes store reopened in June after being renovated and expanded.

The company’s leather goods and saddlery segment grew 19 percent, the ready-to-wear and accessories sector rose by 15 percent, the silk and textiles sector increased 1 percent, the perfume and beauty sector by 5 percent and the other Hermès sectors saw growth of 19 percent which include jewellery and the home universe. Watches segment remained stable compared to the same period last year.