Hermes sales rebound
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Hermes sales rebounded globally in the first quarter of this year, exceeding analysts expectations.
But the best news seems to be from Hong Kong where the French luxury goods label reported sales had “stabilised” after last year’s serious decline. Sales fell in Macau, Hermes said, without providing further details.
In the broader picture, the company saw respite in its home market after shoppers began to return to stores following the nervousness fuelled by the terror attacks late last year.
Hermes sales for the quarter rose 6.2 per cent on a constant currency basis, to reach 1.19 billion euros (US$1.35 billion)
CEO Axel Dumas said during an earnings call that the fallout from the terror attacks – in both Brussels and Paris – was still hurting luxury goods retailers. Footfall had returned to normal in Milan and London, but remained down in Paris, causing a 9.2 per cent drop in sales of ties and silk scarves in the quarter.
Leather goods was the only category to show a rise in sales – a healthy 15 per cent.
“There’s a lot of volatility,” Dumas said. “We have to adapt to circumstance.”
Questions & Answers
Q.What was the main reason for the improvement in Hermes' sales globally this quarter?
What was the main reason for the improvement in Hermes' sales globally this quarter?
Sales rebounded globally, with the best news coming from Hong Kong where sales stabilised. There was also a respite in the home market as shoppers returned to stores after the nervousness following terror attacks.
Q.Which product category performed exceptionally well for Hermes during this period?
Which product category performed exceptionally well for Hermes during this period?
Leather goods was the only category to show a rise in sales this quarter. It achieved a healthy 15 per cent increase, contributing significantly to the overall sales rebound for Hermes.
Q.How did the terror attacks mentioned impact sales in different European cities?
How did the terror attacks mentioned impact sales in different European cities?
Footfall returned to normal in Milan and London after the attacks. However, it remained down in Paris, causing a 9.2 per cent drop in sales of ties and silk scarves for the quarter.
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