Leather goods lift Hermès performance

Worldwide
Published:  04 November, 2016

At the end of September 2016, Hermès consolidated revenues amounted to €3.7 billion, up 8% at constant exchange rates, with stores posting a solid increase in sales (+9 %) in all the regions. Growth was also sustained in the third quarter (+9%).

In the first nine months of the year, revenues rose in all regions worldwide, with Japan achieving “a remarkable performance” thanks to its selective distribution network (+9%), and despite the strengthening of the yen.

Asia (excluding Japan) registered an 8% growth and gained from store openings at Hong Kong airport and in Macao, after the May opening of Liat Towers in Singapore. In China, the rise in sales continued, even though the context remained challenging in Hong Kong and Macao.

Despite the “still uncertain context”, North America recorded positive growth (+8%) in the period, and benefits from last year's extensions and renovations, while Europe posted a 7% growth as the Group's stores confirm their resistance, despite the impact of recent events, particularly in France.

According the luxury brand, growth over the first nine months of the year was driven by the success of Leather Goods and Saddlery (+16%) which confirmed its role as the mainstay of the Group. The company attributes the positive growth of the division to the success of the collections and the diversity of models, in particular the bags Constance, Halzan and Lindy, together with Birkin and Kelly. “The development was supported by the sustained pace of deliveries and production, which gained from the capacities of the three new sites in Charente, Isère and Franche-Comté. Investments for a third site in this latter region continue”, said Hermès in a statement.

Over the first nine months of the year, Hermès International bought back 245,315 shares for €82.5 million, outside of the transaction as part of the liquidity contract. The company confirms its goal for sales growth at constant exchange rates, which should be below 8%, in 2016. Operating profitability should be slightly higher than in 2015 given the favourable impact of foreign exchange hedges.

comments powered by Disqus