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French luxury firm Hermes sustains growth momentum across all regions

25
Oct '21

Pic: Hermes International

Hermes International, a French manufacturer of fashion apparel and accessories, has reported a 54.0 per cent year-over-year sales increase to €6.6 billion in the third quarter (Q3) of FY21 ended on September 30, 2021, over the same period of previous year, while up 35.3 per cent from Q3 FY19. The performance in the Q3 benefited from an upturn in sales in Europe, an acceleration in America and a sustained dynamic in Asia.

“The performance of the third quarter reflects an atypical year, during which we continue our strategic investments and accelerate job creations. In a world that remains unstable, the balance between our sixteen métiers and between our locations around the world, allows us to move forward with optimism and caution, while continuing to create beautiful, high quality, sustainable objects,” Axel Dumas, executive chairman of Hermes, said in a press release.

Asia excluding Japan saw a 61.7 per cent sales growth to €3.2 billion (€2.0 billion), gaining from a remarkable performance in China and other countries, despite new restrictions in Australia, Thailand and Malaysia in Q3. While sales in America accelerated by 74.9 per cent to €1.0 billion (€0.6 billion). Moreover, sales from Europe surged 42.2 per cent to €1.5 billion (€1.0 billion), benefitting from the support of local customers, growing online sales and the partial return of tourist traffic.

All the business sectors posted positive growth during the third quarter. Sales from ready-to-wear and accessories escalated by 71.2 per cent to €1.6 billion (€0.9 billion), while silk and textiles grew 59.7 per cent to €432.8 million (€271.0 million). The women's spring-summer 2022 fashion show, unveiled early October, revealed a solar collection with aerial silhouettes, after the men's collection early July, around an artistic performance filmed in real time, according to the company. The leather goods and saddlery sector’s sales accelerated by 42.4 per cent to €3.0 billion (€2.1 billion).

“Our highly integrated craftsmanship model and balanced distribution network, as well as the creativity of our collections and our customers' loyalty, give us confidence in the future. In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, we confirm an ambitious goal for revenue growth at constant exchange rates,” the group stated in its outlook.

Fibre2Fashion News Desk (JL)

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