Maison Hermès’ first-quarter turnover saw a 10.1% (€943.5 million) increase. The sales rose even by 14.7% at constant exchange rates. Masion Hermès, founded in Paris in 1837, continues to show strong performances, notably supported by Asia.
Maison Hermès : Business in Asia Continues to Grow
“Japan has an outstanding performance,” Maison Hermès remarked. The Group benefited from advance purchases in Japan before the rise in price and VAT in the consumption sector that resulted in soaring constant exchange rates at 21.7% (+5.8% at current exchange rates).
Asia (excluding Japan) also shows a strong sales growth rate of 17.7% (€329.3 million). China, having a booming luxury industry, contributed also to this positive trend, Maison Hermès pointed out.
America “demonstrates its strong potential” with a sales increase of 17.9% (€150.1 million) while Europe held steady at €329.2 million (+7.9% at constant exchange rates) “in a tough economic environment.“
Results by Sector: All Green except Watchmaking
Watchmaking is the only sector that hit by a “perennially difficult market”. Fortunately, “the latest innovations were very well received at the Basel clock and watch trade show.”
Leathergoods and Saddlery saw an increase of 16% (€409.9 million) at constant exchange rates, benefiting from “the ramp-up of two new sites opened in 2012 in Isère and Charente.”
Ready-to-wear and Accessories recorded a sales growth rate of 19% (€214.6 million) while Silk and Textiles was at 14% (€114.5 million), “a remarkable performance.”
Perfumes generated €60.8 million (+5.9% at constant exchange rates).
Other Hermès sectors, including Jewellery, Art of Living and Tableware gained 17%.
“Maison Hermès will carry on its long-term strategy based on creativity, mastery of expertise, expansion of its distribution network, strengthening of its production capacities and securing of its supply. In 2014, Hermès Group focuses on the theme of metamorphosis. Precious metals become objects in the skilful hands of craftsmen. But above all, it is our company’s unwavering determination to continually reinvent itself in order to push the limits of excellence.”
The bi-annual results will be released on 18 July Friday and we will then see if “a strong sales dynamic” of the first quarter persists.