Hermès posts 28% sales growth in Q2

The consolidated revenue of the Hermès group in the first half of 2023 amounted to 6,698 million euros, up 25% at constant exchange rates and 22% at current exchange rates.

In the second quarter, the company said, sales reached 3,317 million euros, up 28% at constant exchange rates and 22% at current exchange rates, with strong momentum in all businesses and all regions.

Commenting on the company’s commercial results, Axel Dumas, Executive Chairman of Hermès, said in a statement: “The results for the first half of 2023 reflect the strength of the pillars of the house’s artisanal model: quality of materials, know-how exceptional and rich creativity.To support this growth, we are continuing to invest in our production capacities, in the extension of our network, while accelerating job creation and training in all of the group’s businesses.

Hermès improves its profitability in Q2 and H1

Current operating profit reached 2,947 million euros, 44% of sales, and net profit reached 2,226 million euros, 33% of sales.

Current operating income increased by 28% to 2,947 million euros, while operating profitability reached 44%. Consolidated net profit amounted to 2,226 million euros, 33% of turnover, an increase of 36%.

In the medium term, despite the economic, geopolitical and monetary uncertainties in the world, the group confirms a revenue growth objective at constant exchange rates.

At the end of June 2023, the company added, all regions posted strong growth of 20% or more, with exceptional growth in Asia, supported by a favorable comparison base in the 2nd quarter. Sales increased significantly both in group stores, up 25% at constant exchange rates, and in wholesale activities, up 26%, which benefited from the rebound in travel retail . Asia excluding Japan grew by 28%, driven by Greater China, Singapore, Thailand, Australia and Korea. The Peninsula store, the house’s first address in Beijing in 1997, reopened in April after renovation and extension.

Sales in Japan increased by 26%, thanks to its local customers. The Fukuoka Hakata Hankyu store reopened in May after renovation. Sales in the Americas increased 20% in the second quarter. In the United States, a new store opened in Aspen, Colorado in June, following the one in Naples in the Gulf of Mexico in February.

Sales in Europe excluding France increased by 22% and France by 24%. The Hamburg store reopened in April after being renovated and expanded.

Hermès posts sales growth in all its businesses

The company’s leather goods and saddlery recorded growth of 21%. Two new leather goods production workshops were inaugurated in Louviers (Normandy) in April and in La Sormonne (Ardennes) in May.

The Saint-Junien leather goods and glove workshop has been relocated to a new, larger site on the banks of the Vienne. Four new leather goods production sites will open over the next four years, in Riom (Puy-de-Dôme) in 2024, L’Isle-d’Espagnac (Charente) in 2025, Loupes (Gironde) in 2026 and Charleville-Mézières (Ardennes) scheduled for 2027.

The ready-to-wear and accessories division increased its sales by 35%, while sales in the silk and textile branch increased by 22%, supported by the extension of production capacities at the Pierre-Bénite site near Lyon, inaugurated in July. Sales of perfumes and beauty products increased by 10%. Sales in the watch branch increased by 24%.

The other Hermès businesses increased their turnover by 32%.

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