- Prachi Singh |
After a second quarter marked by the health and economic crisis, Hermès said, sales in the third quarter increased 7 percent at constant exchange and 4 percent at current exchange rates driven by positive activity in the group’s stores, up 12 percent at constant exchange, momentum in Asia and an improvement in all other geographical areas. At the end of September 2020, the group’s consolidated revenue amounted to 4,288 million euros, down 14 percent at current and constant exchange rates.
Commenting on the trading results, Axel Dumas, Executive Chairman of Hermès, said in a statement: “In 2020, we are seeing the affirmation of major strategic commitments with social and environmental responsibility, the digitalisation of uses and lifestyles, as well as positive market dynamics in Asia. Our good performance enables us to continue to invest and to create jobs.”
Hermès witnesses positive Q3 sales results across geographies
At the end of September 2020, the company added, sales in the group’s stores were down 11 percent at constant exchange, with a third quarter up 12 percent. Wholesale activities were down 35 percent over nine months, penalised by travel retail. The company reported 4 percent sales growth in Asia excluding Japan, driven by an 29 percent rise in the third quarter benefitting from the the company’s performance of Mainland China, Korea, Australia and Thailand, while the activity in Hong Kong and Singapore improved. Sales in Japan dropped 11 percent for nine months but were up 11 percent in the third quarter.
Sales in America declined by 29 percent with sales slightly down in the third quarter due to the store closures in Hawaii since August. The Denver store in Colorado reopened in August at a new location. Europe excluding France posted 27 percent sales decline and France was down 33 percent, still suffering from the drop in tourist flows, partly offset by local customers.
At the end of September, the Leather Goods and Saddlery business line reported decline of 13 percent, but saw 8 percent improvement in the third quarter, while Ready-to-Wear and Accessories, which saw 16 percent drop, showed a strong turnaround in the third quarter at 7 percent growth. Silk and Textiles business was down 32 percent penalised by a high comparison basis in the third quarter and by the lower sales in travel retail. Perfumes, also penalized by the impact of travel retail activity, were down 22 percent. Sales of Watches declined 8 percent but achieved a very good third quarter, up 13 percent. The Other Hermès business lines rose 12 percent and are highly growing with a 42 percent increase in the 3rd quarter, thanks to Jewellery and Home universe.