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Hermès strong sales momentum over the first half of 2019

Hermès strong sales momentum over the first half of 2019

The group’s consolidated revenue amounted to €3,284 million in the first half of 2019, up +12 % at constant exchange rates and +15 % at current exchange rates. Sales growth was very solid in the group’s stores (+13  % at constant exchange rates).

SEE ALSO : Burberry Group plc first quarter trading update

The sustained growth in the second quarter (+12 % at constant exchange rates and +15 % at current exchange rates) is in line with the trends seen over the first three months of the year.

Axel Dumas, Executive Chairman of Hermès, said: “Hermès sales were very dynamic in the first half of 2019, in all regions and in all business lines. This sound growth reflects the House’s creative drive, outstanding know-how, and the relevance of its craftsmanship model which helps strengthen local integration.”

Sales by geographical area at the end of June
(at comparable exchange rates, unless otherwise indicated)

In the first half of 2019, revenue increased in all geographical areas worldwide:

  • Asia excluding Japan (+18 %) continued its outstanding performance, with positive momentum in continental China and double-digit growth in all other countries in the area. The Group benefitted from successful store openings and extensions in recent months, particularly Shanghai IFC in China and Marina Bay Sands in Singapore. A new store opened in March in Phuket Floresta in Thailand. Rollout of the new digital platform in Asia will continue at the end of the year in Singapore.
  • Japan (+10 %) confirmed its sound growth. The new platform hermes.jp was successfully deployed in June, offering editorial content and products which reflect the diversity of the Maison’s creations.
  • America (+10 %) posted a strong performance at the end of June, despite a high comparison basis. Last April, the Group opened its 36th store in the USA at the heart of New York’s Meatpacking district, and reopened the Waikiki store in Hawaii in June.
  • Europe excluding France (+9 %) and France (+4 %) achieved a good performance. The store in Amsterdam reopened in May after extension, and the store on Stoleshnikov Lane in the historical centre of Moscow was renovated in June. In France, sales improved during the past months.

The momentum in the first half was driven by solid growth across all business lines, with a remarkable performance of the Ready-to-Wear and Accessories division.

Growth in Leather Goods and Saddlery (+12 %) was particularly sustained over the first half of the year, based on collections blending style, know-how and diversity of materials. The division’s annual growth target remains unchanged.

Demand remains very high, both for the Maison’s classics and other models, such as the Mosaïque and 24/24 bags. The increase in production capacities continued, with the ground breaking of the Maroquinerie de Guyenne workshop in June, scheduled for completion in 2020, and the announcement of a new workshop in Louviers by 2021.

Hermès continues to strengthen its local integration in France with the opening of a training centre in Fitilieu (Isère), and the announced extension of the Ganterie-Maroquinerie de Saint-Junien workshop (Limousin region).

The Ready-to-Wear and Accessories division (+15 %) pursued its strong growth, thanks to the success of the men’s and women’s ready-to-wear collections and of fashion accessories and shoes.

The Silk and Textiles business line (+4 %) confirmed it positive momentum, benefitting from sustained demand and the diversity of materials, outstanding creativity and know-how. The Pierre Bénite site (Rhône) will be extended to support development and will accommodate two new printing lines.

Driven by the success of Terre d’Hermès and the new creation, Un Jardin sur la Lagune, Perfumes (+3 %) posted an increase, despite a high comparison basis at the beginning of last year following the launches of Twilly d’Hermès and Eau de Citron noir.

The Watches business line (+14 %) performed very well, reflecting the creativity of the collections. The Galop d’Hermès model, inspired by the harness collections, received a very warm welcome.

SEE ALSO : Swatch Group sales up on Mainland China, Japan growth

Other Hermès business lines (+19 %) recorded a positive increase over the period, both in Jewellery and in the Home universe.

 

 

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