Hermès group’s consolidated revenue reached 2,765 million euros in the first quarter of 2022, up 33 percent at current exchange rates and 27 percent at constant exchange rates.
The company said in a release that sales were particularly dynamic in group stores, especially in America and Europe, driven by the acceleration in all the business lines and the sustained growth in leather goods.
Commenting on the first quarter trading, Axel Dumas, executive chairman of Hermès, said: “The strong growth in sales at the beginning of this year reflects the desirability of our collections and the confidence of our customers in our artisanal and responsible approach. Despite a still uncertain context, the group is accelerating its strategic investments, recruitments and training to support the growth of all the métiers of the house.”
Hermès reports sales growth across geographies
At the end of March 2022, the company added, all the geographical areas posted strong growth. Sales accelerated in group stores with a 28 percent increase compared to 2021.
Asia excluding Japan posted a 20 percent sales rise, benefitting at the beginning of the year from a very good Chinese New Year and from sustained activity, especially in Thailand, Singapore, and Australia. Since mid-March, the company further said, Greater China has been penalised by new health restrictions and some store closures, particularly in Shanghai and Shenyang.
The stores Pacific Place in Hong Kong and One Central in Macao reopened in January and February respectively after renovation. A new store opened in Zhengzhou at the end of March, the first store for Hermès in the Chinese province of Henan.
Sales in Japan rose 17 percent, while Americas posted a 44 percent increasedriven by a good momentum in the United States. The South Coast Plaza store reopened on the California coast in Costa Mesa near Los Angeles, after renovation and extension.
Europe excluding France increased 44 percent and France was up 40 percent benefitting from a favourable comparison basis and achieved a sustained growth particularly in the UK, Germany, Italy and Spain.
Hermès business divisions witness positive growth
At the end of March 2022, all Hermès businesses confirmed strong momentum and benefitted from the acceleration of the ready-to-wear and accessories division, watches and other Hermès business lines including jewellery and homeware.
Growth in leather goods and saddlery of 16 percent was based on the increase in production capacity and sustained demand. Hermès announced two new workshops for 2025 and 2026, in L’Isle-d’Espagnac (Charente) and Loupes (Gironde), the 23rd and 24th leather goods production sites and will eventually employ 500 craftsmen. They will come in addition to the three sites under construction in Louviers (Eure) in 2022, La Sormonne (Ardennes) in 2023 and Riom (Puy-de-Dôme) by 2024.
The ready-to-wear and accessories business line posted a 44 percent increase driven by the success of the ready-to-wear, fashion accessories and footwear collections. The silk and textiles business line rose 27 percent and perfume and beauty sales rose 18 percent. Watches division posted a 62 percent sales increase, while other Hermès business lines saw 37 percent increase.
The company further added that effective 1 March 2022, Sharon MacBeath, group human resources director and Agnès de Villers, chairman and CEO of Hermès perfume and beauty, joined the executive committee.