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French luxury fashion firm Hermes' revenue climbs 23% YoY in Q1 FY23

14 Apr '23

2 min read

Pic: Sergey Bezgodov / Shutterstock.com

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Hermes has reported a consolidated revenue of €3,380 million in Q1 FY23, up 23 per cent YoY at constant exchange rates, with growth seen in all geographical areas and business lines.
The leather goods and saddlery segment grew 19 per cent YoY, while a 34 per cent YoY increase in sales was seen in the ready-to-wear and accessories business line.

France-based luxury fashion brand Hermes has reported a consolidated revenue of €3,380 million, up 23 per cent year-on-year (YoY) at constant exchange rates and 22 per cent YoY at current exchange rates, in the first quarter (Q1) of fiscal 2023 (FY23). The company’s operating income was €4,697 million in FY23, compared to €3,530 million in FY22.

In Q1 FY23, growth was seen across all geographical areas and business lines, with sales particularly dynamic in both stores and online, Hermes said in a press release.

The Asia-Pacific region, excluding Japan, saw a 23 per cent YoY increase in sales in Q1 FY23, driven by a very good Chinese New Year and strong momentum in Greater China, as well as in Singapore, Thailand, and Australia. Meanwhile, Japan recorded sustained growth of 26 per cent YoY based on the loyalty of local customers.

The Americas posted a 19 per cent YoY increase in sales in Q1 FY23, thanks to good momentum in the US. A new store was opened in Naples, Florida, marking the fortieth store for Hermes in the US. Meanwhile, Europe, excluding France, achieved a solid 21 per cent YoY growth. France saw an even stronger growth of 28 per cent YoY.

In Q1 FY23, the leather goods and saddlery segment, up 19 per cent YoY, was driven by sustained demand across all regions. Hermes recently inaugurated a new leather goods production facility in Louviers, with another site set to open in la Sormonne in May.

The ready-to-wear and accessories business line in Q1 FY23 saw a 34 per cent increase YoY in sales, thanks to the success of the ready-to-wear, fashion accessories, and shoes. The silk and textiles business line also recorded sustained growth of 20 per cent YoY, supported by constantly renewed creation and enriched collections, the release added.

"The first quarter of 2023 is aligned with the good results of 2022 and reflects the success met by our collections all over the world, driven by the loyalty of our customers. We are proud to strengthen our production capacities and consolidate our artisanal model. The inauguration of our 21st leather goods workshop in Louviers at the beginning of April is a recent example. This 3rd site in the Normandy Pole testifies to our local anchoring, our commitment to employment, training, and our social and environmental responsibility," said Axel Dumas, executive chairman of Hermes.

Fibre2Fashion News Desk (DP)

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