French luxury group Hermès on Friday reported consolidated revenues reached EUR 3.38 billion (USD 3.72 billion) in the first quarter of 2023, up 23 percent at constant exchange rates, with sales particularly dynamic in all the geographical areas and across all the business lines.
SEE ALSO: Hermès Asia sales up 22 percent in 2022
Hermès Asia excluding Japan revenues surged 23 percent, driven by a “very good” Chinese New Year, which saw strong momentum in Greater China. In January, the company’s Nanjing store, in China’s Jiangsu province, also reopened at a new address after renovation and extension.
Other markets performing well in Asia included Singapore, Thailand, and Australia, said Hermès.
Japan recorded sustained growth, up 26 percent, based on the loyalty of local customers, said the company. A region highlight during the quarter was the men’s Spring/Summer 2023 collection, celebrated in March with an event held in Tokyo Bay.
By category, leather goods and saddlery revenues grew 19 percent; ready-to-wear and accessories sales surged 34 percent; silk and textiles revenues lifted 20 percent; perfume and beauty sales were up 7 percent; and watches revenues jumped 25 percent. The company’s jewellery and homeware sales increased 28 percent.
By channel, sales increased strongly in group stores, up 23 percent at constant exchange rates, and wholesale activities, up 26 percent, benefitting from the recovery in travel retail.
“The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers,” said Axel Dumas, executive chairman of Hermès.
“We are proud to strengthen our production capacities and consolidate our artisanal model. The inauguration of our 21st leather goods workshop in Louviers at the beginning of April is a recent example. This third site in the Normandy Pole testifies to our local anchoring, our commitment to employment, training and our social and environmental responsibility.”
In 2022, Hermès reported a 22 percent increase in Asia revenue for the full year.