Robust growth for Hermès in third quarter

Worldwide
Published:  25 October, 2019

For the quarter ended September 30, the luxury fashion Group's consolidated revenue totalled €5,012 million, up 16% at current rates, with growth in Leather Goods and Saddlery up by 12%.

Hermès’ consolidated revenue amounted to €5,012 million for the three months ending September 2019, up 16% at current exchange rates and 13% at constant exchange rates; driven by growth in all geographical areas and across all business lines. Revenue in Leather Goods and Saddlery grew 12% in the quarter as production capacities continued to increase. As reported by ILM, in September Hermes announced the creation of two new leather goods workshops in the villages of Tournes and Cliron, located in the French region of Ardennes, by 2022. With the opening of the Guyenne and Montereau workshops, scheduled for completion by 2020, and the Louviers workshop by 2021, the new site in Ardennes will be the 21st leather workshop of the Group. The Ready-to-Wear and Accessories division (+17%) is said to have pursued its strong momentum both for women’s and men’s ready-to-wear and for accessories and shoes.

Geographically, the luxury label said its sales were not impacted by the Hong Kong protests, with Asia excluding Japan (+19%) recording an “outstanding performance” in mainland China. Japan (+12%) confirmed “its sound momentum” and benefited from early purchases linked to higher VAT. America posted strong growth, up 10%, especially in the U.S., while revenue in Europe excluding France increased 9%, including “robust growth” in the UK. Revenue in home market France increased 6% in the quarter.

Hermès store in London, UK