French luxury maison Hermes reports 11% sales growth in the first quarter of 2018 across all the business lines and all geographical areas
The Group’s consolidated revenue amounted to € 1,394 million in the first quarter 2018, up 11% at constant exchange rates and 3% at current exchange rates, due to the strengthening of the euro. This solid performance is the result of the well-balanced sales growth. It is particularly healthy as it is mainly based on an increase in volumes in the group’s stores (+11% at constant exchange rates).
Axel Dumas, Executive Chairman of Hermès, said: “All of the métiers have posted strong growth, as well as all regions. I would like to thank the designers, craftspeople and sales teams, and all of the men and women who work for our house for their efforts, which have contributed to achieving these solid results.”
Over the first quarter 2018, all the geographical areas posted strong growth. Asia excluding Japan (+16%) achieved an excellent performance with a positive trend in continental China. In January, the Group inaugurated the new 900sqm Landmark Prince’s flagship store in Hong Kong, which has met a great success. Japan (+8%) continued outstanding growth.
America (+9%) progressed well, despite a high comparison basis in the first quarter 2017. The Cancun store opened in Mexico at the end of March. Europe excluding France (+7%) and France (+6%) achieved a good performance despite the strengthening of the Euro. The new website was successfully deployed in Europe at the end of March, offering a one-stop address for both editorial content and products which reflect the diversity of the Maison’s creations. In France, the 9th Saut Hermès event was successfully held at the Grand Palais.
The performance in the first quarter was driven by sound growth across all the business lines. Growth in Leather Goods and Saddlery (+8%) was sustained in the first quarter. Production capacities continued to increase, with the opening of the Manufacture de L’Allan in early April, and the start of the Guyenne and Montereau production site projects, which are likely to be completed by the year 2020.
The Ready-to-Wear and Accessories division (+17%) confirmed its great performance, driven by the success of the ready-to-wear collections and fashion accessories.
The Silk and Textiles business line (+7%) pursued its momentum in the first quarter, benefitting from sustained demand, the diversity of materials and the wealth of creations.
Perfumes (+16%) increased strongly, driven by the success of Terre d’Hermès and by successful launches, in particularl Twilly d’Hermès.
The Watches business line (+11%) reported a good sales performance in the Group’s stores, especially in Asia. Other Hermès business lines (+23%), which encompass Jewellery, Art of Living and Hermès Table Arts, recorded strong development over the quarter.
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.
In 2018, Hermès is celebrating the theme “Let’s Play !”. Beyond mere recreation, this guiding vision reminds us of the importance of enjoyment as a driver of creativity, innovation and agility.
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