Revenue amounted to €1,610 million in the first quarter of 2019, up 16% at current exchange rates and up 12% at constant exchange rates.
Hermès has attributed the growth to “dynamic sales” in group stores (up 13% at constant exchange rates), with all business lines recording growth and a “remarkable performance” of the Ready-to-Wear and Accessories division. The Leather Goods and Saddlery business line grew by 12.5% in the first quarter of the year, driven by sustained deliveries and benefitting from a favourable comparison basis. The Watches business line is reported to have recorded a strong performance (+22%), “reflecting the creativity of the collections and driven by the launch of the new women’s watch Galop d’Hermès”.
Hermès says production capacities increased in order to meet the high demand, both for the re-invented classics and other models such as the Mosaïque and 24/24 bags. Development projects continued with the ramp-up of the Manufacture de l’Allan workshop, the launch of the Guyenne and Montereau workshops, all located in France, which are expected to be completed by 2020, and the announcement of a new workshop in Louviers by 2021.
Asia (+17%), excluding Japan, is said to have achieved an outstanding performance, with extremely good sales growth driven by mainland China and two-digit growth in all other countries of the area, while Japan posted “remarkable growth” (+10%), despite a high comparison basis. America recorded 10% growth and Europe, excluding France, “achieved a sound performance” (+9.5%), driven particularly by UK. France (+1%), is said to have been negatively impacted by the yellow vests’ protests which continued at the start of the year.
In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an “ambitious goal” for revenue growth at constant exchange rates.