Hermès excels in the first half of 2022
After the half-year results of the LVMH and Kering groups, which posted substantial increases in their sales, it is now the turn of Hermès to announce its results, which also show a large increase.
By Isabella Hübscher29 juillet 2022
The French luxury house Hermès recorded a turnover of 5.5 billion, representing an increase of 23% at constant rates compared to the same period in 2021. In addition, the House saw an exceptional 40% increase in net income totalling 1.6 billion.
Sales in the group's shops increased by 23%, benefiting from the strengthening of the exclusive omnichannel network and online sales. All geographic sectors posted solid performances, with a surprising resilience in Asia, which, for LVMH and Kering, showed a clear slowdown in sales. On the contrary, Asia excluding Japan recorded growth of +15%, driven by strong momentum throughout the region, and in particular by sustained activity in Singapore, Australia and Korea.
Another reason for these good results in Asia was the reopening of the renovated shops in Hong Kong and Macao at the beginning of the year, as well as the new shop successfully inaugurated in Zhengzhou at the end of March, in the Henan province.
Nevertheless, as for LVMH and Kering, the United States and Europe (excluding France), with strong growth of +34% for both regions (France +41%), posted the best results. Japan, relying on a local clientele, recorded growth of +20%.
Unsurprisingly, the brand's leather goods and saddlery division remained the most profitable with 2.3 billion in sales (43% of turnover and +12% growth). It is worth noting that watches and clothing and textiles outperformed with growth of +55% and +36% respectively, compared to the same period last year. In watchmaking, the development of pieces such as the Arceau Le temps voyageur watch is behind this success. "The strong momentum of our first-half results reflects the growth of our 16 business lines and the high desirability of our products, which are handcrafted with a focus on sustainability and without compromising on quality," said Axel Dumas, CEO of Hermès.
The pursuit of the brand's sustainable and responsible strategy has earned the group the Transparency Awards 2022, all categories. The brand is also focusing on the increasing integration of new talent, and has launched the Ecole des Artisans de la Vente in April 2022.
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