French luxury maison Hermès recorded a 42 percent sales increase in 2021, on the back of stellar sales growth in Asia, driven by revenue gains in Greater China, Australia and Singapore.
The Parisian company said full-year sales in 2021 totalled €8.982 billion (US$10.17 billion), up 42 percent at constant exchange rates and 41 percent at current exchange rates, compared to 2020. Over two years, this increase was 33 percent at constant exchange rates.
Hermès recurring operating income was up 78 percent, amounting to €3.53 billion, (US$3.99 billion) or 39.3 percent of sales. Net profit reached €2.445 billion (US$2.77 billion), up 77 percent compared to 2020, said the company in a statement.
By region, sales in Asia excluding Japan surged 45 percent on 2020, and 65 percent over two years, driven by a sustained performance in Greater China, Australia and Singapore, despite new restrictions in some of the region’s countries.
In Asia in the last 12 months, Hermès reopened its Shanghai Plaza 66, Suzhou and Ningbo stores after renovation and extension, after the Beijing China World store in spring, and new stores were inaugurated in Macao and Shenzhen. In Australia, the Brisbane store also reopened after being extended.
Hermès Japan sales elevated 25 percent on 2020, and increased 25 percent on 2019, “thanks to the loyalty of local customers, while benefitting from the end of the health state of emergency in October,” said the company.
By category, the company’s Leather Goods and Saddlery division lifted 29 percent and 23 percent, compared to 2020 and 2019, respectively, while its Ready-to-wear and Accessories business line increased 59 percent and 44 percent over two years. Perfumes and Beauty surged 47 percent and 19 percent over two years, and its Watches business line skyrocketed 73 percent and 77 percent over two years.
Other Hermès business lines increased 57 percent and 95 percent over two years, confirming their momentum, both in Jewellery and Homeware, said the company.
“I thank above all the passion and quality of our teams’ work, because together we have made 2021 an exceptional year. Abundant creativity, unique know-how and the quality of materials have driven the growth of our sixteen métiers,” said Axel Dumas, executive chairman of Hermès.
“Hermès is very dedicated to its role as a committed and responsible company and continues its commitments to job creation around the world and to regional regeneration in France, while reinforcing its ambitious environmental objectives.”