- Prachi Singh |
For the first quarter ended June 2018, Hermès Group's consolidated revenue amounted to 1,394 million euros (1,669.6 million dollars), up 11 percent at constant exchange and 3 percent at current exchange rates, due to the strengthening of the euro. The company said, this growth was driven by 11 percent increase in volumes in the group's stores at constant exchange rates.
Commenting on the first quarter trading, Axel Dumas, Executive Chairman of Hermès, said in a press statement: “All of the metiers have posted strong growth, as well as all regions.”
Hermès posts strong sales rise across geographies
Over the first quarter Asia excluding Japan saw 16 percent rise in sales with a positive trend in continental China. In January, the group inaugurated the new Landmark Prince’s flagship store in Hong Kong. Revenues in Japan increased 8 percent, while America reported a 9 percent increase. Europe excluding France posted 7 percent sales rise and France witnessed a 6 percent revenue growth.
Growth in leather goods and saddlery was 8 percent, while the ready-to-wear and accessories division reported 17 percent increase driven by the success of the ready-to-wear collections and fashion accessories. The silk and textiles business line grew 7 percent, perfumes increased 16 percent, while the Watches business line posted an 11 percent sales rise, especially in Asia. Other Hermès business lines grew 23 percent, which encompass jewellery, Art of Living and Hermès table arts.
As announced on March 21, 2018, Hermès Group finalised the sale of its former Galleria store, on April 12 and expects this transaction to generate a net capital gain in the region of 50 million euros (59.8 million dollars) in 2018.
In the medium-term, despite growing economic, geopolitical and monetary uncertainties around the world, Hermès said that the group confirms an ambitious goal for revenue growth at constant exchange rates.