Hermès shows off good results

Hermès shows off good results

French luxury group Hermès has had sales of 1.8 billion euro in the first six months of 2013. That is 11% more than in the same period of 2012 and also more than expected. At constant exchange rates it would have been 14.4%, but the dropping yen have caused the results to weaken.

Especially strong retail sales

Hermès especially had strong sales in its shops. At constant exchange rates sales rose by 16.7%. In wholesale sales for the company went up by 12.9%.

 

The growth was also visible on a wide geographic scale. At constant rates sales in its home country went up 13%, in the rest of Europe 14%. In Asia (excluding Japan) the rise was even bigger at 17%, the same result as both Americas.

 

Only Japan lagged behind a bit, with a progress of about 8%. All in all 812 million euro of sales came from Asia, on a total of 1.8 billion euro for Hermès.

 

Bigger demand than offer

The good results were also present in almost all product groups. Only for wristwatches there was a small decline of 1%, in accordance with the rest of that market. This was all because of disappointing results in the first trimester. Between early April and end of June sales grew by 3%.

 

The branch of leather goods grew by 10%, but that could have been more, because production capacity had to be limited. The company is therefore opening two extra factories for artisanal products in Franche-Comté. The perfume department grew by 20%, jewellery by no less than 40%.

 

Year forecast: +10%

On 30 August Hermès will announce the financial results for the first six months of the year. They will probably rise slightly more than sales.

 

For the complete year 2013 the company is expecting sales to grow slightly more than the target of 10% the company has set on a medium term. The operational margin will probably come close to the historical heights of 2012.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top