The French luxury house continues to enjoy good momentum with revenues up 29% in the first half of 2022.
For Hermès, momentum is good in the first half of 2022. The group’s consolidated sales amounted to €5,475 million, up 29% at current exchange rates and 23% at constant exchange rates compared to the same period in 2021. Profit from recurring operations was 2,304 million euros (42% of sales) and net income (group share) was 1,641 million euros (30% of sales).
Second quarter sales reached €2,710 million, up 26% at current exchange rates, with strong momentum across all business lines.
Axel Dumas, CEO of Hermès, commented: “The strong momentum of our first half results reflects the growth of our 16 business lines and the high desirability of our objects, which are designed by craftsmen with a focus on sustainability and without compromising quality. In a still unstable context, we are moving forward with confidence, faithful to our business model of responsibility and commitment to our employees and partners.”
In Europe and worldwide
In the first half of 2022, all regions posted very solid performances, with Asia holding up well despite the health context in China. Overall, Asia was buoyed by strong momentum across the board, notably by sustained activity in Singapore, Australia and Korea. Japan (+20%) turned in a remarkable performance, supported by the loyalty of local customers.
The Americas (+34%) continued to enjoy excellent momentum at the end of June, with a new store opened in Austin in April, the company’s third store in Texas.
In Europe, excluding France (+34%) and France (+41%) continued their solid growth, thanks to the loyalty of local customers and the return of tourists, particularly in France, the United Kingdom and Italy.
Expertise and outlook
At the end of June 2022, all the sectors confirmed their strong momentum, with remarkable growth in Silk, Clothing and Accessories, Watches and Other Hermès Sectors, including Jewelry and other House products.
Growth in Leather Goods and Saddlery (up 12%) was driven by sustained demand and increased production capacity, in line with the division’s annual target. The Apparel and Accessories division (+36%) continued its strong momentum and Silk and Textiles (+29%) achieved excellent growth.
Perfumes and Beauty (+23%) benefited from the success of new launches and Watches (+55%) achieved an exceptional performance.
As for the group’s outlook for the remainder of 2022, the press release states that “In the medium term, despite economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious target for revenue growth 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.”
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Featured photo : © Hermès
