Sales of French luxury company Hermes increased 29% in the first 6 months of the financial year 22
Revenue for the second quarter reached €2,710 million (26% at current exchange rates and 20% at fixed exchange rates), with a high level of activity across all business lines.
Hermes’ consolidated revenue reached €5,475 million in the first half of 2022, up 29% at current exchange rates and 23% at fixed exchange rates compared to the same period in 2021. Recurring operating income up to €2,304 million (42 percent of sales). Net profit (group shares) reached €1,641 million (30% of revenue).
“The very dynamic results in the first six months are testament to the growth of our 16 tailors and the strong desire for our items, designed by craftsmen. with a sustainable approach, without compromising on quality. In the midst of uncertainty, we are moving forward with confidence, staying true to our role as a responsible company and committed to our employees and partners.” Axel Dumas, executive chairman of Hermesspeak.
In the first half of 2022, all geographies experienced strong growth, with strong resilience from Asia despite the difficult backdrop in China. Sales at the group’s stores (23%) benefited from the strengthening of the exclusive omni-channel network and online sales. The company said in a press release that wholesale activity increased by 25%, notably due to the resumption of travel retail.
By the end of June 2022, all lines of business were claiming high levels of turnover, with a significant increase in Hermes silks, ready-to-wear and accessories, watches and other businesses. basis for the great desire of the Hermes house.
The growth of the Leather and Saddle division (12%) was driven by steady demand and an increase in production capacity, in line with the annual target. The Rolling Mobile Suitcase (RMS), which is customizable and the result of special know-how and many innovations, has received a warm welcome. Five new workshops are being planned over the next five years, with the Louviers (Eure) and Sormonne (Ardennes) sites in 2023 and the Riom (Puy-de-Dôme) site in 2024. Sites in L’ The Isle-d’Espagnac (Charente) and Loupes (Gironde) have been announced for the years 2025 and 2026. As a result, Hermes continues to strengthen its local presence in France and to create jobs.
The ready-to-wear and accessories division (36%) pursues its dynamic growth, driven by the success of its footwear, fashion accessories and ready-to-wear collections. The women’s fall-winter 2022 fashion show held in March at the Garde républicaine in Paris was a huge success, as was the men’s spring-summer 2023 collection revealed at the manufacture des Gobelins in September. 6. New creations such as the Rivale micro-bracelet, the Olympe single earring or the Enid sandal have all been very successful, alongside iconic creations of the fashion house with the Hapi bracelet, the H clich and the Kelly belt .
The silk and textiles business (29%) has enjoyed excellent growth, with collections that combine a variety of new materials, formats and uses, and supported by the growth of the industry. production capacity at the PierreBénite site near Lyon.
For 2022, the impacts of the health landscape are still difficult to assess. The highly integrated craft model and balanced distribution network, as well as the creativity of the collections and customer loyalty allow the brand to look to the future with confidence. Over the medium term, despite worldwide economic, geopolitical and monetary uncertainties, the group insists on its ambitious goal of revenue growth at a constant exchange rate.
Fiber2 fashion news desk (RR)
