Sales remains steady for Hermes
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Despite currency fluctuations knocking out €104 million (US$124.5 million) of revenue, Hermes International reports solid first-quarter sales with China again a hero.
Excluding Japan, Asia achieved 16 per cent growth. Japan continued with outstanding growth of 8 per cent. In January, the group opened a Landmark Prince’s flagship store in Hong Kong.
The French luxury fashion group’s consolidated revenue for the period amounted to € 1.3 billion, up 11 per cent at constant exchange rates and 3 per cent at current exchange rates with the strengthening of the euro.
“This solid performance is the result of the well-balanced sales growth,” says executive chairman Axel Dumas. “It is particularly healthy as it is mainly based on an increase in volumes in the group’s stores.”
Performance was driven by sound growth across all business lines, led by a 17 per cent jump in the ready-to-wear and accessories division. Perfumes also performed with 16 per cent growth.
Meanwhile, Hermes Group finalised the sale of its former Galleria store on April 12, expected to generate a net capital gain of about €50 million.
Questions & Answers
Q.What impact did currency fluctuations have on Hermes' revenue during the first quarter?
What impact did currency fluctuations have on Hermes' revenue during the first quarter?
Currency fluctuations reduced Hermes' reported revenue by €104 million during the first quarter. Despite this, the company still achieved solid sales figures, particularly in Asia.
Q.Which region showed the strongest growth for Hermes in the first quarter, excluding Japan?
Which region showed the strongest growth for Hermes in the first quarter, excluding Japan?
Excluding Japan, Asia achieved the strongest growth for Hermes in the first quarter, with sales increasing by 16 per cent. China was highlighted as a key driver of this performance.
Q.What was the growth rate for Hermes' consolidated revenue at constant exchange rates?
What was the growth rate for Hermes' consolidated revenue at constant exchange rates?
Hermes' consolidated revenue grew by 11 per cent at constant exchange rates. This figure demonstrates robust underlying sales growth before the impact of currency movements, particularly the strengthening euro.
Q.Which business division experienced the highest growth within Hermes during this period?
Which business division experienced the highest growth within Hermes during this period?
The ready-to-wear and accessories division led the growth across all business lines. This segment saw a significant 17 per cent jump in sales, contributing strongly to the overall performance.
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