Retail in Asia


Hermès continues to defy luxury slowdown, propelled by APAC and Japan

For the first quarter of 2024, Hermès has reported consolidated revenue of EUR3,805 million—a significant 17 percent increase at constant exchange rates, and a 13 percent increase at current exchange rates.

This remarkable growth was observed across all geographical areas, defying the slowdown that has ailed luxury conglomerates including LVMH and, more significantly, Kering, whose flagship brand Gucci continues to struggle.

SEE ALSO: Hermès ends year strong for 21 percent uptick, Asia sales up double digits in 2023

Axel Dumas, the executive chairman of Hermès, attributed the brand’s success to its loyal clientele worldwide, the enduring strength of its artisanal model, and the desirability of its creations in an increasingly complex environment.

The Asian market, excluding Japan, proved to be a significant driver of growth for Hermès, with a notable 14 percent increase in sales.

The region witnessed sustained expansion across all countries, as the allure of Hermès’ exquisite objects and the brand’s value-driven strategy offset softer traffic in Greater China following the Chinese New Year festivities.

In January, Hermès opened its 34th store in China, located in the Eastern province of Jiangsu’s Wuxi.

Customers line up outside a store in Tokyo. Source: Shutterstock

Meanwhile, Japan experienced exceptional growth, boasting an impressive 25 percent increase in sales. In February, Hermès inaugurated a new store in Tokyo’s Azabudai Hills district.

The Americas also contributed significantly to Hermès’ success, with a robust 12 percent growth in sales. The United States played a pivotal role in driving this momentum. Europe, both excluding France and within its home country, witnessed solid growth rates of 15 percent and 14 percent, respectively, despite facing high comparison bases.

Across all sectors, Hermès maintained its momentum. The Leather Goods and Saddlery métier experienced a remarkable 20 percent growth, driven by sustained demand and enriched collections.

The Ready-to-Wear and Accessories sector also thrived, boasting a 16 percent increase in sales. In the Silk and Textiles sector, Hermès achieved sustained growth of 8 percent.

The Perfume and Beauty sector maintained steady growth, recording a 4 percent increase compared to the first quarter of 2023, which had benefitted from the launch of the eau de toilette Un Jardin à Cythère.

Hermès recently presented its home collection at Milan Design Week 2024. Source: Hermès

The Watches métier also continued its upward trajectory, reporting a 4 percent growth.

The Other Hermès sectors, which encompass Jewellery and the Home universe, experienced a remarkable 25 percent growth.

Looking ahead, Hermès remains confident in its prospects, despite economic, geopolitical, and monetary uncertainties worldwide. The brand reiterates its ambitious goal for revenue growth at constant exchange rates, underpinned by its highly integrated artisanal model, balanced distribution network, creative collections, and the unwavering loyalty of its clients.