2 August 2023
Sales at upmarket French leather goods and saddle maker Hermes accelerated in the second quarter, showing the resilience of global demand for the group’s high-end leather goods despite a difficult global economic backdrop, writes ILM.
Group sales for the three months to the end of June came to €3.32 billion, up 27.5% at constant exchange rates with double-digit growth in all regions.
Recurring operating income for the first half was €2.96 billion, up 28%, while margins climbed to 44%, compared to 42% in the first half of last year.
Revenue was driven by sales increases at both in stores and in wholesale activities, supported by the rebound in travel retail, the company said.
Hermes said the strongest growth was in Asia, helped by Chinese New Year celebrations, and by momentum in Singapore, Thailand, Australia and Korea.
The company backed its medium-term goal for revenue growth at constant exchange rates.
Hermes targets wealthy consumers and bases its business model in exceptional quality and limited production to maintain exclusivity. As a result, it continues to outperform its rivals in the luxury space.