Hermès continues its “exceptional” growth in the 3rd quarter

Hermès maintained “exceptional” growth in the 3rd quarter, achieving 2.367 billion euros in sales (2.53 billion francs), an increase of 40% compared to 2019 before the Covid-19 pandemic. The luxury group confirms an “ambitious” objective.

Over nine months, Hermès turnover climbed to 6.602 billion euros, up 35% over two years (archives).

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Income jumped thanks to strong growth in “all geographic areas,” Hermès announced Thursday. Over the period from July to September, activity benefited from the “recovery in sales in Europe”, from an “acceleration in America” while Asia maintained “good momentum”.

The turnover thus exceeds the consensuses established by the analysts polled by Bloomberg and Factset, who expected respectively 2.199 billion euros and 2.209 billion.

Over nine months, turnover climbed to 6.602 billion euros, up 35% over two years.

“In a world that remains unstable, the balance between our sixteen businesses and between our locations around the world allows us to move forward with optimism and prudence, while continuing to create quality, beautiful and durable objects”, says Axel Dumas , manager of Hermès, quoted in the press release.

In the third quarter, Asia (excluding Japan) achieved growth of 67% over two years. In North Asia (mainland China, Hong Kong, Macao and Taiwan), the group has had “small ups and downs linked to health measures” but “overall (the) stores have worked well”, explained the financial director Eric du Halgouët during a conference call.

In South Asia, “where there too we had constraints to close stores, such as in Thailand and Australia”, the delay has been made up, “so overall in the third quarter Asia achieved a very good performance”, he said.

America is growing strongly at + 40% over two years. Europe (+ 23%) and France (+ 13%) recovered in the third quarter thanks to local customers, growth in online sales but also the recovery in tourism.

By activity, over nine months, all businesses recorded double-digit growth compared to 2019: Clothing and accessories (+ 43% over two years), Watchmaking (+ 77%), Jewelry and household products (+ 98% ). Sales of leather goods and saddlery, Hermès’ core business, have increased by 27% since 2019.

“Despite a high basis for comparison in the 4th quarter, the group is approaching the end of the year with confidence”, according to the press release, and in the “medium term, despite the economic, geopolitical and monetary uncertainties in the world”, Hermès “confirms an ambitious objective of increasing sales at constant rates”.

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