Sales by geographical area
Hermes Paris reported a €11.2 billion (~$12.1 billion) revenue in Q3 2024, up 14 per cent year-on-year at constant exchange rates.
Sales reached €3.7 billion (~$4.01 billion), showing growth across all regions, especially Japan (+23 per cent) and Europe (+18 per cent). Leather goods (+17 per cent) led growth, while Hermes maintained confidence in long-term growth amid global uncertainties.
Asia excluding Japan posted growth of 7 per cent at constant exchange rates, supported by solid sales in Korea, Singapore, Australia, and Thailand. The region is growing in the third quarter despite the downturn in traffic in Greater China observed since the end of the Chinese New Year and a high base in the third quarter last year. The Shenzhen store in China reopened in October after renovation and expansion, following the Lee Gardens store reopening in Hong Kong in June. In August, the Collins Street store in Melbourne reopened after renovation, as per a press release by Hermes.
Japan (+23 per cent), after an excellent third quarter, confirmed its strong growth due to the loyalty of its local clients. The new Ginza Mitsukoshi store was inaugurated in Tokyo in June, after the Azadubai Hills store in February.
The Americas (+13 per cent) continued their solid momentum in the third quarter, with growth close to the previous two quarters. The new Princeton store in New Jersey opened in April and online sales continued their development with their extension to Mexico in September.
Europe, excluding France (+18 per cent) achieved a remarkable performance, notably in the third quarter thanks to solid local demand and continued dynamics of tourist flows in all the countries of the region.
France (+14 per cent) after a sustained third quarter confirmed its momentum despite a slight slowdown in traffic in the Parisian stores due to the Olympic games. The Nantes store reopened in June after being renovated.
Sales by sector
The leather goods and saddlery metier (+17 per cent) continued its solid growth. Demand remained sustained for both iconic models, which are constantly being reinvented, and for new models, such as the Constance Elan and Bolide a dos bags with a marked saddler spirit. The ready-to-wear and accessories sector (+15 per cent) confirmed its sustained momentum. The silk and textiles sector (+2 per cent) grew in the third quarter, due to creations combining exceptional materials and savoir-faire.
The production capacity of the company continued to increase, with the opening of the group’s twenty-third leather goods workshop in Riom, in the Puy-de-Dome, in September. This new facility reinforces the company’s nine centres of expertise located across the national territory, stated the release.
At the end of September 2024, currency fluctuations represented a negative impact of €242 million on revenue.
Axel Dumas, executive chairman of Hermes, said: “In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance and our customers for their loyalty. Thanks to the singularity of its model, Hermes is continuing its recruitments and long-term investments.”
Fibre2Fashion News Desk (SG)
