Hermès sales up 44% in first quarter

France
Published:  23 April, 2021

The French luxury Group’s consolidated revenue amounted to €2,084 million in the first quarter of 2021, up 44% at constant exchange rates and 38% at current exchange rates, attributed to an outstanding performance in Asia and Japan, the upturn in America and a good resistance in Europe. The organic revenue growth was 33% compared to the first quarter of 2019.

The first quarter of 2021 confirmed the in-store acceleration in sales, with a growth of 51% compared to 2020 and 41% compared to the first quarter of 2019. The network continued to develop with the openings and extensions of stores and due to growing online sales worldwide. Wholesale activities, down 2%, remain penalised particularly by travel restrictions.

Asia, excluding Japan, was up 94%, driven by highly dynamic activity in Greater China and sustained activity in Korea, Thailand, Singapore and Australia. Japan is up 20% and a new store was successfully opened in Tokyo in February 2021.

America was up 23%, returning to growth, which started at the end of 2020 and completing a good first quarter despite local constraints.

Europe, excluding France, was down 1% and down 9% including France, attributed to new restrictions during the first quarter and by store closures in several countries, especially in the United Kingdom, Germany and Switzerland. The drop in tourist traffic was partly offset by the loyalty of local customers and strong growth in online sales.

The Leather Goods and Saddlery division was up 34%, where sales accelerated in the first quarter, driven by the strong deliveries made at year end. The Victoria bag, combining leather and canvas with Fine Mycelium, completed the collections.

Hermès continues to strengthen its local presence in France and job creation: the increase in production capacities continues, with the opening of the sites in Guyenne (Gironde) and Montereau (Seine-et-Marne) in 2021, the Louviers site (Eure) scheduled for 2022, the new site in Ardennes for 2023 and the second production site in Auvergne for 2024.

At the end of March 2021, currency fluctuations represented a negative impact on revenue of €79 million.

Outlook

Hermès’ integrated craftsmanship model and balanced distribution network, as well as the creativity of its collections and its customers’ loyalty, keep it confident about the future. The group remains highly engaged and active by gradually adapting measures to those taken by health and public authorities.

In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.

Credit: Hermès