Hermès sales rebound in ready-to-wear, leather bags
Hermes International sales surged in the first quarter as consumers strayed to the organization’s ready-to-wear clothes and leather bags. Revenue rose 27% at constant exchange rates to 2.77 billion euros ($3.02 billion) in the first three months of the year, bag producer Birkin said in a statement on Thursday. proclamation. Experts expected a 15% increase. The most successful is the ready-to-wear line, which grew by 44%, more than twice the gauge. The development of its largest leather goods and saddlery unit also exceeded expectations. The action, however, progressed by 4.6% in the first Paris stock exchanges.
To relaunch production, Hermès announced plans last month to open two new leather goods workshops in France for 2025 and 2026, which will create 500 jobs. This is in addition to three other sites scheduled to open within the next 3 years to address supply constraints. Hermès still aims to increase leather goods volumes between 6% and 7% per year, du Halgouet said.
As of Thursday, three of the company’s 26 stores in China were closed due to lockdowns. All three stores are in Shanghai, chief financial officer Eric du Halgouet told reporters on a call. Activity in China was buoyant between the start of the year and the arrival of the shutdowns at the end of March, he said, adding that “the fundamentals are exceptional in China”.
Hermès is in close contact with its staff in Russia where its three Moscow stores closed last month following the invasion of Ukraine, du Halgouet said. Russia accounts for less than 1% of the group’s total sales, he said. The company had planned to open a store in St. Petersburg in June, but that is now on hold, he said.
Hermès’ results follow those of rival European luxury goods maker LVMH earlier this week, which warned analysts that lockdowns in China were having a negative impact on sales, although it did not quantify the drop. .
Hermès has already implemented price increases of 3.5% on average at the start of the year amid inflationary pressures, and may raise prices for its jewelry and watch lines in the middle of this year to compensate. rising precious metals costs, du Halgouet said. He expects higher prices in 2023.
Summary of news:
- Hermès sales rebound in ready-to-wear, leather bags
- Check out all the news and articles from the latest business news updates.