Retail in Asia

In Sectors

Hermès H1 sales surge 22 percent on ‘exceptional growth’ in Asia

Hermès announced consolidated revenue in the first half of 2023 amounted to EUR 6.7 billion (USD 7.4 billion), up 22 percent at current exchange rates, on the back of “exceptional growth” in Asia.

SEE ALSO: Hermès opens first Tianjin store in China

Hermès Asia excluding Japan region sales surged 28 percent, after a successful Chinese New Year, as the Parisian brand claimed a “strong momentum” in Greater China and throughout the region, particularly in Singapore, Thailand, Australia and South Korea.

Hermès said its second quarter benefitted from a favourable comparison basis year on year, due to the health measures taken in China in April and May 2022. The Peninsula store, the house’s first address in Beijing in 1997, also reopened in April after renovation and extension.

Likewise, Hermès Japan sales grew 26 percent during the six-month period, thanks notably to its “local clients,” it said. During the period, the Fukuoka Hakata Hankyu store also reopened in May after renovations.

By category, leather goods and saddlery recorded 21 percent growth, on the back of sustained demand and a favourable comparison basis in the second quarter, notably in Greater China, while the brand’s ready-to-wear and accessories division skyrocketed 35 percent, driven by the success of the ready-to-wear collections, fashion accessories and shoes. The silk and textiles business line grew 22 percent, with perfume and beauty gaining 10 percent.

The company’s watches division climbed 24 percent, while its other Hermès business lines, including home collections, grew 32 percent.

For the six months ending June 30, consolidated net profit amounted to EUR 2.2 billion, up 33 percent, compared to EUR 1.6 billion.

“The 2023 first half results reflect the strength of the pillars of the artisanal model of the house: quality of materials, exceptional know-how and abundant creativity,” Axel Dumas, executive chairman of Hermès.

“To support this growth, we continue to invest in our production capacities, in the expansion of our network, while accelerating job creation and training in all of the group’s métiers.”

The group said it “continues the year 2023 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.”

In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group said it “confirms an ambitious goal for revenue growth at constant exchange rates.”