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Hermès reports 12 percent growth in sales

By Prachi Singh

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REPORT_ At the end of September, the Hermès Group's consolidated revenue registered a 12 percent rise at constant exchange rates. After adjusting for the negative impact of currencies, growth was 9 percent. In the third quarter, growth remained strong with over 11 percent at constant exchange rates, particularly in the group's stores.

The opening of China's first Maison Hermès in Shanghai was one of the major events of the quarter. At the end of September 2014, sales were growing in all regions. Asia excluding Japan with over 15 percent growth posted a good performance despite recent events in Hong Kong and the slowdown in China's luxury market. Rise in Japan was over 13 percent was buoyant and confirmed the positive trend observed in the first half-year, in America, growth was over 14 percent. Rise in Europe was over 7 percent, made solid advances in a difficult economic climate.

Growth in leather goods and saddlery was over 15 percent supported by the increased production capacities of the two new sites in Isère and Charente. Plans to build two new workshops in Franche-Comté are underway. The dynamism in ready-to-wear and accessories sales was over 13 percent. The silk and textiles business line saw over 9 percent rise and continues to expand its collections with new formats and exceptional materials. A new online showroom and store for Hermès silk lamaisondescarres.com was launched in September. Rise in perfumes sales was over 9 percent. Watches with below 10 percent rise continued to be penalized by wholesale sales in a market that remains challenging, particularly in Asia (excluding Japan).

For the full year, the group is retaining its mid-term objective of revenue growth at constant rates of around 10 percent. Operating margin could be slightly less than the all-time high achieved in 2013 (32.4 percent) due to the negative impact of currencies.

Hermès