Hermes posts strong growth
Sales for the French fashion brand were up 9 per cent at constant exchange rates, with consolidated revenues reaching €5.5 billion (US$6.7 billion). After adjustment for the negative currency effect resulting from the year-end strengthening of the euro, the increase was 7 per cent.
In the final quarter growth was sustained at 5 per cent at constant exchange rates.
During the year Hermes continued to improve its distribution network, renovating and extending almost 20 stores. It launched websites in Canada and the US, to be followed by China at the end of this year.
Asia, excluding Japan, saw sales rise 11 per cent with a positive outlook in Mainland China and South Asia.
Hermes says the context is improving in Hong Kong and Macau. Regional stores were extended and renovated – the Sogo Fuxing store in Taiwan, Kowloon Elements in Hong Kong and the Kuala Lumpur store.
Despite a high comparison basis, Japan recorded a sustained increase of 4 per cent thanks to its selective distribution network.
Leather goods and saddlery sales grew 10 per cent to meet demand for such bags as Constance, Halzan, Lindy and Verrou. Shoes particularly boosted sales in the ready-to-wear and accessories division, up 9 per cent, silk and textiles had a 6 per cent rise, while the perfumes division posted 10 per cent growth with the launch of Twilly d’Hermes.
There was a 1 per cent rise in watch sales, while other Hermes business lines ‒ encompassing jewellery, Art of Living and Hermes Table Arts ‒ rose 11 per cent.
Currency fluctuations had a negative impact of €100 million on revenues.
The company will publish its annual results next month.
This story first appeared on sister site Inside Retail Asia.
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