Hermès continues its run: in the first quarter of 2022, the French luxury giant breaks through +30% in sales, even beating analysts' expectations. Despite the war in Ukraine and the lockdowns in China, the Parisian brand's sales reached 2,76 billion euros in the first three months of 2022, an increase of 33% compared to the same period of 2021, mainly supported by sales in America and in Europe, driven by the acceleration of all business lines and the sustained growth of leather goods. After the negative session recorded yesterday Wednesday 13 April, the title today on the Paris stock exchange it rose by 1,12% to 1.264 euros.
"Despite a still uncertain environment, the group is accelerating strategic investments, hiring and training to support the growth of all businesses," said Axel Dumas, president of the group. “For 2022, the impacts of the healthcare environment are still difficult to assess. In the medium term, despite the economic, geopolitical and financial uncertainties in the world, the group confirms an ambitious goal of growth in turnover at constant exchange rates”, specifies the group.
The luxury market opens 2022 with a bang, confirming a trend of unstoppable growth not only for Hermès, but also for Ferragamo (returned active after two years) e LVMH which recorded a more than positive first quarter of 2022.
Hermès continues its run: solid international growth
Hermès was the first luxury group to announce its closures shops in Russia at the beginning of the conflict in Ukraine. The manufacturer of saddlery and leather goods has three stores in Moscow and employs 60 people. The opening of a fourth store in St. Petersburg scheduled for June has been suspended. "The impact is not significant for the group," explained Eric du Halgouët, chief financial officer, during a conference call, "Sales in Russia represent less than 1% of the group's sales," which had no business in Ukraine . Furthermore, Hermès “fully complies with the legislation and does not sell to the list of oligarchs” that was sent to it.
As regards the situation in China, Hermes had an "exceptional" start to the year, according to the CFO, until March, when the first confinements began. Currently Hermes, who is 26 shops in China, has three closed stores in Shanghai. However, the group says it is "confident" and points out that it has won new customers in China.
Sales by geographical area as at 31 March 2022
Hermès continues its run: at the end of March 2022, all geographical areas have recorded strong growth. Sales accelerated in the group's stores with an increase of 28% compared to 2021. The network has continued to develop with store openings and extensions and the strengthening of online sales worldwide.
Asia excluding Japan (+20%) benefited from an excellent Chinese New Year and buoyant activity at the start of the year, especially in Thailand, Singapore and Australia. Since mid-March, Greater China has been hit by new health restrictions and some store closures, particularly in Shanghai and Shenyang. Pacific Place stores in Hong Kong and One Central in Macau reopened in January and February respectively after renovations. A new store opened in Zhengzhou at the end of March, the first Hermès store in China's Henan province. In March, after New York and Paris, the HermèsFit event dedicated to fashion accessories on the theme of sport was held in Bangkok, Thailand.
Il Japan (+17%) continued its sustained growth, "based on the loyalty of local customers and the success of the collections", reads a note from the group.
Le Americas (+44%) accelerated sharply at the end of March, thanks to good momentum in the United States. The South Coast Plaza store has reopened on the California coast in Costa Mesa, near Los Angeles, after a renovation and expansion.
The Europe excluding France (+44%) and the France (+40%) benefited from a favorable comparison base and achieved sustained growth particularly in Britain, Germany, Italy e Spain. In France, the twelfth edition of Saut Hermès was successfully held for the first time at the Grand Palais Éphémère on the Champ-de-Mars in Paris.
Sales by business line as of March 31, 2022
At the end of March 2022, all businesses confirm strong momentum and benefit from the acceleration of the Ready-to-wear and accessories division, watches and other Hermès business lines (jewellery and homeware).
The growth of Leather goods and Saddlery (+16%) is based on the increase in production capacity and sustained demand. Two new workshops have been announced for 2025 and 2026, in L'Isle-d'Espagnolc (Charente) and Loupes (Gironde), the 23rd and 24th leather goods production sites and will employ around 500 craftsmen. They will join the three sites under construction in Louviers (Eure) in 2022, La Sormonne (Ardenne) in 2023 and Riom (Puy-de-Dôme) in 2024.
Hermès continues its run thanks also to the business line Clothing & Accessories e accessories (+44%) which confirmed a remarkable growth, driven by the success of the prêt-à-porter, fashion accessories and footwear collections. The autumn-winter 2022 women's fashion show held in March at the Garde républicaine in Paris met with great success, after that of the men's collection presented at the Mobilier national in January.
Even the line of business Silk e fabrics (+27%) recorded a good performance, "benefiting from an offer enriched by new uses and new know-how in terms of materials and formats".
Bouquet e Bellezza (+18%) are driven by the creations and olfactory proposals of the French maison. The Hermès Beauty line launched a fourth chapter in March with a new approach to the Hermès Plein Air complexion.
- Watches (+62%) achieved an outstanding performance. The new Arceau watch, Le temps voyageur met with great success at the Watches and Wonders international exhibition in Geneva at the end of March.
The other Hermès business lines (+37%) confirmed their momentum, thanks to Homeware and Jewellery. The Soleil d'Hermès tableware collection, with geometric designs of the sun, will be presented in June in Milan.
