19 April 2023
Hermès has released its financial results for the first quarter of 2023, achieving consolidated revenue of €3.38 billion, reports ILM.
Consolidated revenue for the quarter was up by 23% at constant exchange rates and 22% at current exchange rates. Sales in group stores were up by 23% at constant exchange rates while wholesale saw growth of 26% in the quarter.
However, the company highlighted that currency fluctuations represented a negative impact of €21 million on revenue at the end of March 2023.
In Asia, excluding Japan, Hermès achieved growth of 23%, a noted that a very good Chinese New Year helped drive strong momentum in Greater China while Singapore, Thailand and Australia also did well.
Meanwhile, Japan recorded sustained growth at 26%, while the Americas achieved growth of 19% thanks to momentum in the U.S. Europe, excluding France, had growth of 21% and the company attributed strong results in the UK and Italy to tourists. Finally, Hermès’ home market of France had growth of 28% in the quarter.
Looking at the business groups, Leather Goods and Saddlery achieved growth of 19% in the first quarter of the year, which the company said was thanks to sustained demand worldwide. Hermès recently announced the opening of a new leather goods workshop at its Normandy hub.
The Ready-to-Wear and Accessories business line was up by 34% in the period, thanks to success in ready-to-wear, fashion accessories and shoes. Finally, the Watches segment had growth of 25%.
Axel Dumas, Executive Chairman of Hermès, said: “The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers.
“We are proud to strengthen our production capacities and consolidate our artisanal model. The inauguration of our 21st leather goods workshop in Louviers at the beginning of April is a recent example. This third site in Normandy testifies to our local anchoring, our commitment to employment, training and our social and environmental responsibility.”