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

Hermès revenue grew 21 percent to EUR 13.4 billion in 2023, on the back of double-digit growth across all regions including Asia and Japan, proving the latest luxury firm to buck the global sales slowdown trend affecting many other rival firms.

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The French luxury maison said all geographical areas posted a “solid performance with homogeneous growth of around 20 percent,” for the period ending December 31.

Sales increased both in the group’s stores, up 20 percent, which benefited from a strong demand and the reinforcement of the exclusive distribution network, while wholesale sales were up 24 percent, driven by the travel retail business.

Asia excluding Japan grew 19 percent, with significant increases in sales in all the countries of the region. During the last quarter, Hermès opened a second store in October in Chengdu, becoming the house’s thirty-third address in mainland China, following the opening of a store in Tianjin in July. In Korea, the store at the Shilla Hotel in Seoul reopened in December after renovation and extension work.

In Japan, sales skyrocketed 26 percent with the Daimaru Sapporo store on Hokkaido island and the Takashimaya store in the centre of Kyoto inaugurated in October and November, after renovation and expansion.

By category, Hermès global leather goods and saddlery segment grew 17 percent, while the ready-to-wear and accessories segment surged 28 percent, thanks to the success of the ready-to-wear and footwear collections. Elsewhere, silk and textiles sales were up 16 percent, perfume and beauty sales increased 12 percent, while watches surged 23 percent during the year. Finally, jewellery and homewares grew 26 percent.

Consolidated net profit group share amounted to EUR 4.3 billion, compared to EUR 3.4 billion in 2022, said the Paris-based firm.

“In 2023, Hermès has once again cultivated its singularity and achieved an outstanding performance in all métiers and across all regions against a high base,” said Axel Dumas, executive chairman of Hermès.

“These solid results reflect the strong desirability of our collections and the commitment and talent of the house’s women and men. I thank them all warmly.”

The earnings update from Hermès coincided with rival Kering’s financial update. Th owner of Gucci, Saint Laurent, and Balenciaga brands said annual sales declined in 2023, as the luxury conglomerate continued to struggle with comparable sales declines across all major brands during the fourth quarter, hit by a slowing appetite for its luxury goods.