French luxury firm Hermes' revenue up 29% in H1 FY22

Sales in the second quarter reached €2,710 million (26 per cent at current exchange rates, and 20 per cent at constant exchange rates), with a high level of activity in all the business lines.

“The very dynamic results over the first six months of the year testify to the growth across our 16 métiers and the strong desirability of our objects, designed by craftsmen with a sustainable approach, without compromising on quality. In a still unstable context, we are moving forward with confidence, faithful to our role as a responsible and committed company to our employees and our partners,” Axel Dumas, executive chairman of Hermes, said.

Over the first half of 2022, all the geographical areas posted strong growth, with strong resilience from Asia despite the sanitary context in China. Sales in the group's stores (23 per cent) benefitted from the strengthening of the exclusive omni-channel network and online sales. Wholesale activities grew by 25 per cent, resulting notably from the resumption of travel retail, the company said in a press release.

At the end of June 2022, all the business lines confirmed their high levels of sales, with a remarkable increase in silk, ready-to-wear and accessories, watches and other Hermes business lines underlying the huge desirability of the house Hermes.

The growth of the Leather Goods and Saddlery division (12 per cent) is driven by sustained demand and the increase in production capacities, in line with the annual objective. The Rolling Mobility Suitcase (R.M.S), customisable and the result of exceptional know-how and multiple innovations, received a warm welcome. Five new workshops are in project for the next five years, with the Louviers (Eure) and Sormonne (Ardennes) sites in 2023 and the Riom (Puy-de-Dôme) site in 2024. The sites in L’Isle-d’Espagnac (Charente) and Loupes (Gironde) have been announced for 2025 and 2026. Hermes thus continues to strengthen its local presence in France and to create jobs.

The ready-to-wear and accessories division (36 per cent) pursued its dynamic growth, due to the success of the ready-to-wear, fashion accessories and footwear collections. The women’s autumn-winter 2022 fashion show held in March at the Garde républicaine in Paris met with great success, as did the men's spring/summer 2023 collection revealed at the manufacture des Gobelins in June. New creations such as the Rivale micro bracelet, the single earring Olympe or the Enid sandal were very successful, alongside the house’s iconic creations with the Hapi, clic H bracelets and the Kelly belt.

The silk and textiles business line (29 per cent) achieved excellent growth, with collections combining diversity of materials, formats and new uses, and supported by the development of production capacities at the PierreBénite site near Lyon.

For 2022, the impacts of the health context are still difficult to assess. The highly integrated craftsmanship model and balanced distribution network, as well as the creativity of the collections and clients' loyalty allows the brand to look to the future with confidence. 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.

Fibre2Fashion News Desk (RR)