Hermès sales of leather goods and saddlery up +12%

Worldwide
Published:  15 September, 2017

One of the world’s most exclusive fashion brands, Hermès has posted consolidated revenues amounting to €2,713 million for the first half of 2017, up +11% at current exchange rates and +10% at constant exchange rates.

Hermès’ operating income was up +13 % in the period, reaching €931 million (34.3% of sales), while net profit reached €605 million, up +11%.

During the first six months of 2017, the Group recorded revenue growth in all the geographical areas worldwide; Asia excluding Japan (+14%) is driven in particular by China, Japan (+3%) achieved robust growth, despite the strengthening of the yen; North America (+9%) developed in a contrasting environment, and with a particularly high comparison basis in the second quarter; Europe (+7%) is said to have “performed very well”, and particularly benefitted from store openings and extensions in Rome in October, and London and Munich in March. France in particular is reported to have posted “a good increase in Group stores”.

Growth in the leather goods and saddlery category (+12%) was due to the success of the collections and the diversity of models. According to Hermès, the development was supported by the sustained pace of production and the increase in capacities at its three new French sites in Charente, Isère and Franche-Comté. In June, the Group opened two new production sites, the Maroquinerie de Normandie and the Ganterie-Maroquinerie in Saint-Junien, France.

The Ready-to-wear and Accessories division (+10%) is also said to have performed well, driven by the success of the ready-to-wear collections as well as jewellery accessories and shoes. The watches business line (-1%), was penalised by a challenging market but showed a slight upturn in the second quarter.

Hermès Group says it has pursued its recruitment and strengthened its workforce by over 200 people during the first six months of 2017. As at the end of June 2017, the Group employed 13,059 people, including 8,060 in France.

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