French luxury seller Hermès' third quarter turnover grew more than 15 % thanks to Chinese tourists coming to Europe and the cheaper yen which prompted plenty of Japanese customers to make a purchase.
1.14 billion euro
French luxury house Hermès' turnover reached 1.14 billion euro, up 15.4 % compared to the same quarter last year, with organic growth at 7.9 %. Its "jewelry and living accessories" division performed best (+12.7 %), while fashion (+11.9 %) and perfumes (+10.7 %) also did well. Leatherwear, which is still the largest contributor with 533 million euro, grew 8.6 %, while the watches division slumped 5.2 %.
Regionally, Japan performed best with a 16.6 % organic growth, although Europe also did well with a 14.8 % growth. Europe's performance mostly comes down to Chinese tourists visiting Europe in droves to take advantage of the advantageous exchange rates and to avoid the higher import taxes in China.
Turnover growth in the Asian-Pacific Ocean region (excluding Japan) slowed down: organic growth dropped from 7 % in the first 6 months to 1.5 % in the third quarter.
Over the past 9 months, the company's organic turnover growth reached 9 % and that is also why Hermès has maintained its full-year turnover growth forecast of 8 %, excluding exchange rate fluctuations.