Demand continues for Hermès leather goods and saddlery

Worldwide
Published:  09 February, 2018

Consolidated revenue for the French luxury house totalled €5,549 million in 2017, up +9% at constant exchange rates, with sustained growth in the fourth quarter (+5% at constant exchange rates), driven by all the geographical areas.

Despite overall good results, Hermès fourth-quarter sales increased 4.6% at constant exchange rates, less than half the rate of the previous three months in 2017. The Group's consolidated revenues amounted to €5,549 million, up +9% at constant exchange rates. After adjustment for the negative currency effect resulting from the year-end strengthening of the euro, the increase was +7% at current exchange rates.

Asia, excluding Japan, pursued its upward curve (+11%) with a positive outlook in mainland China and in South Asian countries, and the context is said to be improving in Hong Kong and Macao. Japan despite a high comparison basis, recorded a sustained increase (+4%) thanks to its selective distribution network, while America achieved a good year (+8%), particularly in the U.S.  Europe “confirmed an outstanding performance in the Group stores”, up +8%, attributed to the success of the stores opened or extended on Sloane Street in London, in Munich and Copenhagen. France is reported to have performed particularly well (+5%).

Growth in the Leather Goods and Saddlery (+9.7%) division, which includes bags, riding, diaries and small leather goods, is in line with luxury Group’s annual growth target and production capacities. Development projects continue with France’s Maroquinerie de l’Allan, and the launch of the Manufactures de Guyenne and de Montereau which are likely to be completed by the year 2020. The Ready-to-Wear and Accessories division increased +9%, driven by the success of the ready-to-wear collections, fashion accessories and particularly shoes, according to Hermès.

Hermès’ new website, deployed in Canada and the U.S., is to be launched in Europe in the first half of 2018, then in China at the end of 2018.

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