Retail in Asia

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Hermès Asia sales up 22 percent in 2022

French luxury group Hermès announced on Friday consolidated revenues for the full-year 2022 amounted to EUR 11.6 billion (USD 12.34 billion), up 29% at current exchange rates and 23% at constant exchange rates, compared to 2021.

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In Asia (excluding Japan), sales surged 22 percent for the year and “remained very dynamic throughout the geographical area.”

Sales performance in Greater China was “sustained,” said the company. In October, Hermès opened a fourth China store in the Qiantan district in Shanghai, as well as inaugurating a store in Pangyo, in South Korea. Likewise, several stores reopened after renovation and extension work, such as the Hyundai Coex store in Seoul in December and the Hong Kong international airport store in November.

Japan, up 20 percent, recorded a steady, sustained increase in sales. In November, the Takashimaya store in Nagoya reopened after renovation and extension in a new location, and the Hermès in the Making exhibition showcased the house’s know-how in Kyoto.

By category, the leather goods and saddlery business line increased 16 percent, benefitting from very sustained demand and a favourable comparison basis in the fourth quarter. The ready-to-wear and accessories division clocked strong growth, up 36 percent, thanks to the success of the ready-to-wear, fashion accessories and footwear collections.

The silk and textiles business line surged 20 percent, while perfume and beauty lifted 15 percent. The watches business line skyrocketed 46 percent, while its ‘Other Hermès’ business lines rose 30 percent which included jewellery and homeware.

The Paris-based company said recurring operating income amounted to EUR 4.7 billion, or 40.5 percent of sales. Net profit reached EUR 3.4 billion, representing net profitability of 29%.

“In 2022, Hermès had an exceptional year thanks notably to the good performance of its international markets,” sad Axel Dumas, executive chairman of Hermès.

“This success reinforces our approach as an artisanal and highly integrated company, mainly in France: a design house that offers objects conceived to be functional, with an assertive style and uncompromising quality. The year underpins the relevance of our responsible and sustainable model.”

In the fourth quarter 2022, Hermès said its “great sales momentum” recorded at the end of September continued, with sales reaching EUR 3 billion, an increase of 26% at current exchanges rates and 23% at constant exchange rates.