French luxury brand Hermès reported an outstanding growth in the third quarter with each of the regions and business lines posting double-digit growth. Beating forecasts, Hermès revenues rose 31 percent in Q3 as Asia remains strong.
SEE ALSO : Kering announces financial results
The Group’s consolidated revenue reached US$2.76 billion in the third quarter. Sales growth was outstanding at 31 percent at constant exchange rates compared to 2020 and reached 40 percent over two years. The activity benefited from an upturn in sales in Europe, an acceleration in America and a sustained dynamic in Asia.
“The performance of the third quarter reflects an atypical year, during which we continue our strategic investments and accelerate job creations. In a world that remains unstable, the balance between our sixteen métiers and between our locations around the world, allows us to move forward with optimism and caution, while continuing to create beautiful, high quality, sustainable objects,” said Axel Dumas, Executive Chairman of Hermès.
Over the first nine months of the year, sales in the Group’s stores increased 60 percent at constant exchange rates compared to last year, and 43 percent compared to 2019. The network continued to develop with store openings and extensions, and online sales increased worldwide. Wholesale activities remain penalised particularly by travel retail.
Asia, excluding Japan, continued to see sustained activity, driven by an excellent third quarter. It gained from a remarkable performance in Greater China and other countries in Asia, despite new restrictions in Australia, Thailand and Malaysia in the third quarter. In September, Hermès unveiled a second store in Shenzhen, its 28th address in mainland China.
Japan confirmed its solid growth, thanks to the loyalty of local customers, despite restrictions due to the health state of emergency.
America accelerated significantly at the end of September, driven by an outstanding performance in the third quarter. Europe strongly recovered in the third quarter, with double-digit growth compared to 2019. It benefited from the support of local customers, growing online sales and the partial return of tourist traffic.
All the business lines posted an excellent performance over the third quarter and an outstanding increase in Ready-to-wear and Accessories, Watches and Other Hermès Business Lines (Jewellery and Homeware).
The increase in production capacities continues, with 3 new sites to be opened over the next three years. In September, Hermès opened the École Hermès des savoir-faire (Hermès school of know-how), which is accredited by the French Education Department and will award a State-approved diploma in leatherworking expertise.
SEE ALSO : Hermès opens new Shenzhen Bay MIXC store
In a context of gradual improvement in the health situation, the group is continuing its investments and accelerates job creations. The French firm added that despite a high comparison base in the fourth quarter, it is approaching the year-end with “confidence.”