Good news for the Hermès luxury group, which is reporting consolidated sales of €2,765 billion in the first quarter of 2022.
2.8 billion in the first quarter of 2022, up 33% at current exchange rates and 27% at constant exchange rates. Business was particularly dynamic in the group’s shops, especially in America and Europe, driven by strong growth in leather goods.
Axel Dumas, CEO of Hermès, was delighted : “The strong growth in sales at the beginning of the year reflects the desirability of our collections and our customers’ confidence in our artisanal and responsible approach. Despite a still uncertain environment, the Group is stepping up its strategic investments, recruitments and training to support growth in all of the House’s businesses.”
With results to the end of March 2022, we can see that all geographical areas are growing strongly. Activity in the group’s shops is accelerating, with sales up 28% compared to 2021. The network is continuing to develop with the opening and extension of shops and the strengthening of online sales.
All Hermès sectors confirmed this strong momentum and benefited from the acceleration of the Apparel and Accessories segment, Watchmaking and the other Hermès sectors (Jewellery and Household products). For example, growth in Leather Goods and Saddlery (up 16%) was driven by sustained demand and increased production capacity. Two new leather goods factories will be opened in 2025 and 2026, in L’Isle-d’Espagnac (Charente) and Loupes (Gironde), the company’s 23rd and 24th leather goods workshops, which will eventually house 500 craftsmen.
The Clothing and Accessories division (+44%) also confirmed strong growth, driven by the success of the ready-to-wear collections, notably boosted by the women’s autumn-winter 2022 show presented in March at the Garde Républicaine in Paris, which was very well received.
The biggest increase was in the watch sector with +62% moje společnost. The new Arceau watch was very well received at the international Watches and Wonders exhibition in Geneva at the end of March.
“In the medium term, despite the economic, geopolitical and monetary uncertainties in the world, the group confirms an ambitious objective for growth in turnover at constant rates. Thanks to its unique business model, Hermès is pursuing its long-term development strategy based on creativity, mastery of know-how and original communication,” the group said in a statement.
Read also > WHY HERMÈS IS SETTING UP TWO NEW LEATHER GOODS FACTORIES IN SOUTHWEST FRANCE
Featured photo : © Hermès
