Hermès sees double-digit growth thanks to Asia

Hermès has had a strong first half of the year. The French luxury house saw its turnover rise by 15%. Growth was strongest in Asia, but improved in all regions.

“Very dynamic”

In both the first half of 2019 and in the past second quarter, Hermès recorded double-digit growth. In the past quarter, sales increased by 12% at constant exchange rates or 15% with the help of some favourable currency effects. After the first six months, those figures were reversed: turnover increased by 15% at constant rates (reaching 3.28 billion euros), and growth with currency effects was 12%.
 

Hermès stores sold 13% more. “Sales were very dynamic in the first half of 2019, across all regions and in all company departments,” CEO Axel Dumas commented. “This healthy growth reflects the house’s creative drive, its excellent know-how and the relevance of the craftsmanship model that helps reinforce the local integration.”

Asian expansion

Hermès grew by 4% in its domestic market of France. In the rest of Europe, that figure was 9%. In the United States, where the accessory brand recently opened its 36th store in New York, sales increased by 10%. The strongest growth was still in Asia (excluding Japan), where turnover ended an impressive 18% higher. In the more mature market of Japan, the group grew by 10%.
 

The manufacturer of the famous Birkin Bag continues to invest in its Asian expansion. In the past few months, they opened stores in prestigious shopping centres in Shanghai, Singapore and Phuket. The fashion house is also launching a new digital platform in Singapore in late 2019.
 

Growth took place in all divisions, but Dumas singles out the 15% turnover increase of ready-to-wear and accessories as particularly remarkable. Expectations for the rest of the year are still high at Hermès, despite “growing econimic, monetary and geopolitical uncertainties”.