On April 25, the Hermès Group reported consolidated sales of €3,805 million for the first quarter of 2024. Driven by strong growth in all regions, sales were up 17% at constant exchange rates and 13% at current exchange rates.
In a statement, Axel Dumas, Chairman of Hermès, commented on the first quarter results: “The solid sales growth in the first quarter 2024 reflects the loyalty of our clients worldwide, the strength of the group’s artisanal model and the desirability of our creations in a more complex environment. Hermès pursues its strategy based on exceptional know-how, the finest materials and uncompromising quality.”
As of March 31, 2024, Hermes achieved double-digit growth in all regions. In Asia, excluding Japan, all regions recorded 14% growth.
Normally, a drop in traffic in Greater China would be expected after the Chinese New Year, but the high brand value and product appeal seem to have offset this. In addition, the new Wuxi Hermès store, the 34th in China, opened in eastern Jiangsu Province in January of this year.
In Japan, however, exceptional growth of 25% was recorded. In Tokyo, the opening of the new Hermès store in Azabudai Hills in February of this year also attracted a great deal of attention among connoisseurs.
Sales in the Americas increased 12%, driven by momentum in the United States. This March, “Hermes in the Making,” a traveling exhibition showcasing artisan expertise, was held in Mexico City, and a “Home Universe” themed parade event was held in Los Angeles. Europe, excluding France, achieved a 15% increase in sales, while France achieved a 14% increase.
Sales growth by category was as follows
- Leather goods and saddlery segment: +20
- Ready-to-wear and accessories: +16
- Silk and textiles: +8%.
- Perfumes and beauty: +4%.
- Watches: +4%.
- Other Hermès sectors including Jewelry and Home Universe: +25%
Hermès, which showed better-than-expected growth in the first quarter, seems to have significantly outpaced its competitor LVMH, demonstrating once again the strength of the brand in the luxury market.