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Yahoo
21-04-2025
- Business
- Yahoo
Hermes achieves 9% revenue increase in Q1 2025
Luxury fashion house Hermes has reported a consolidated revenue of €4.13bn ($4.70bn) in the first quarter (Q1) of 2025 (FY25), marking a 9% rise at current exchange rates and a 7% increase at constant exchange rates compared to the same period in the previous year. The company witnessed growth across all regions where it operates. The Asian market, excluding Japan, saw a modest increase of 1% to €1.97bn, despite facing a high base for comparison from the previous year and reduced traffic in Greater China since the end of the first quarter in 2024. Meanwhile, Japan experienced 17% sales jump, reaching €421m in Q1 FY25, attributed to the strong patronage of domestic customers. Sales in the Americas rose by 11%, continuing the strong performance seen in the last quarter of 2024, with the US showing robust activity in March. Sales in Europe, excluding France, rose by 12.7% to €501m over the quarter, while France itself saw a 14% rise, buoyed by steady demand from locals and an influx of tourists. The Middle East, categorised under 'Other' geographical areas, maintained its positive trajectory with a 14% increase in sales. By the end of March 2025, Hermes observed growth across all its business lines except for Watches and Perfume and Beauty. The Leather Goods and Saddlery division reported a 10% rise, propelled by continuous demand and new additions to their collections such as the Médor and Mousqueton bags. The Ready-to-wear and Accessories division saw a 7.2% increase, while Silk and Textiles enjoyed a 4.5% uptick. Conversely, the Watches division faced a 10% decline in sales. Hermès executive chairman Axel Dumas said: 'In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration, a guarantee of preserving unique savoir-faire. 'Despite a high comparison basis in the first quarter, the group achieved solid growth in sales, thanks to the trust of its customers and the commitment of the teams, whom I thank warmly.' Despite current economic, geopolitical, and currency fluctuations globally, Hermes maintains an optimistic medium-term outlook for revenue growth at constant exchange rates. In October last year, Hermès faced renewed legal challenges from US consumers who allege that the French luxury brand requires customers to make additional purchases before allowing them to buy its Birkin bags. "Hermes achieves 9% revenue increase in Q1 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Forbes
17-04-2025
- Business
- Forbes
Hermès Comfortably Passes $5 Billion In First Quarter
Hermès has again highlighted the weakness of LVMH by generating strong growth of 7% in the first quarter against the Louis Vuitton owner's 3% contraction (both at constant currency). And despite Trump's changing tariffs threats, the French scarves to leather handbags house is looking at further robust growth this year. Consolidated revenue figures at Hermès, released today, hit €4.1 billion ($5.3 billion) for the first three months of the year. Whereas LVMH, owned by billionaire Bernard Arnault, did not see growth in any of its divisions leading to its share price plunging earlier this week, almost all of Hermès big revenue-driving segments achieved solid Q1 growth. The luxury goods company, famous for its timeless Birkin and Kelly bags, was steered by its two biggest divisions, leather goods/saddlery and ready-to-wear/accessories, which surged by 10% and 7.2% respectively. The two divisions accounted for almost 72% of Hermès revenue in the first quarter and a big driver was demand for the new Médor and Mousqueton bag models. The much smaller segments of jewelry and Hermès home products (grouped financially as 'other'), and silk/textiles were also on a growth path, climbing by 6.1% and 4.5%. Only the smallest segment at Hermès; watches and beauty, were in decline, by 10% and 0.5% respectively. They accounted for 5.8% of the company's revenue in Q1. In a statement, Axel Dumas, executive chairman of Hermès, said: 'Despite a high comparison basis in the first quarter, the group achieved solid sales growth. In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever.' Those fundamentals include strict controls on quality and keeping creativity at the heart of the brand. Dumas added that vertical integration was also 'a guarantee of preserving unique savoir-faire' and something that would therefore be pursued further. Hermès' strategy is based on what it calls creative freedom. This allows its artistic directors, every year, to come up with a theme and run with it; often something connected to the house's history which spans nearly 200 years. 'Drawn to craft' is the theme this year; 'from the saddle stitch to the pencil stroke, everything at Hermès begins with drawing' said the company. At an operational level, to guarantee the craftsmanship the brand is known for, Hermès has accelerated the securing of supplies of materials, consolidating relations with its suppliers over time. The vertical integration that Dumas mentioned has been via partnerships and acquisitions. This also ensures traceability in its supply chains and supports its development strategy with regards to materials as well as techniques. Geographically, Hermès' biggest sales region of Asia Pacific (excluding Japan) was its weakest but still grew by 1.2% in the first quarter. Japan, had the best growth, topping 17%, while the Americas was the weakest outside Asia, but again has a respectable increase of 11%. The company said that there had been 'solid momentum' in the United States in March, before Trump's 'liberation day' tariffs were announced on April 2. As a sign of its confidence, Hermès is increasing it's production capacities. Later this year, the company will inaugurate L'Isle-d'Espagnac, a leather goods workshop in Charente, while Loupes in Gironde, and Charleville-Mézières in Ardennes, are scheduled to open in 2026 and 2027 respectively. They will reinforce the nine centers of expertise located across France, further underscoring the brands heritage. This comes at a time when viral videos about Chinese-made luxury are doing the rounds on social media, and undermining some European brands. Looking ahead to the rest of 2025, Hermès confirmed it would remain focused on 'an ambitious goal for revenue growth at constant exchange rates' but did not put a number on it. In a statement the company added: 'In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections, and the loyalty of clients.'
Yahoo
17-04-2025
- Business
- Yahoo
Hermès Sales Growth Slows to 7.2 Percent in Q1
PARIS – Amid the luxury slowdown, Hermès International showed continued strength with sales in the first quarter up 7 percent at constant exchange rates to 4.13 billion euros. The numbers fell slightly short of analysts' expectations, which had forecast the gain at 8 percent to 4.2 billion. More from WWD Trump's Press Secretary's Dress Stirs Up Social Media in China Fashion Group International Presents Rising Star Awards to Bonnie Young, Natalia Fedner, Rex Shoes and More Brunello Cucinelli Posts Growth in Q1, Cites Solid Upward Trend in April While Hermès has outpaced its French luxury rivals such as LVMH Moët Hennessy Louis Vuitton, which reported sales down 2 percent on Monday, it marks a deceleration from the fourth quarter, when the company's sales grew 18 percent. 'In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever,' Hermès chief executive officer Axel Dumas said in a statement. 'Despite a high comparison basis in the first quarter, the group achieved solid growth in sales.' He highlighted the group's vertically integrated model as one of its core strengths. The result 'confirms a slower consumer demand environment,' Bernstein analyst Luca Solca wrote in a research note. The U.S. showed robustness, up 11 percent at constant exchange, particularly 'solid momentum' in March, even as tariff uncertainty gripped the market. Sales in Europe were up 13 percent, excluding France. Hermès' home country showed robust numbers of 14 percent growth, which the company chalked up to 'sustained local demand and dynamic tourist flows.' The Middle East continued to gain momentum, up 14 percent at constant currency, while Japan saw sales jump 17 percent in the quarter, driven by local clients. The rest of Asia proved to be the weakest point, with sales up just one percent on the continued weakness of China. For the leather goods division, sales at constant currency were up 10 percent, boosted by the new bag designs Médor and Mousqueton, while sales of its ready-to-wear continued to be a dark horse in the house, up 7 percent in the quarter. Silk and textiles, which includes the house's famous scarves, were up 5 percent, while jewelry was up 6 percent. Sales in the fragrance and beauty division were flat. Watches were the weakest link, with the category down 10 percent in the quarter, despite the introduction of two new models during the Watches and Wonders fair in Geneva, and updated version of its classic H08. The company is continuing its expansion, and will open three new production facilities in France over the next three years. Sales were up 9 percent with currency fluctuations taken into account, which boosted the company's bottom line by 49 million euros in revenue. 'In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,' the company said in a statement. 'In a more uncertain economic and geopolitical context, the group has moved into 2025 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
