With a sales growth of 22 %, Hermès has beaten its rival LVMH in the first quarter of 2023. The designer brand owes this growth to its loyal customers and to a successful Chinese New Year.
Beyond expectations
The French manufacturer of the Birkin bag achieved a turnover of 3.38 billion euros in the first quarter of this year, an increase of 22 %. This is even more than market leader LVMH, who sold 17 % more in the same period. However, the growth drivers are similar: the return of the Chinese market and luxury consumers who are not at all affected by inflation.
Own retail sales increased by 23 % and wholesale sales by 26 %, considerably more than the 15 % increase that analysts were expecting. Hermès was able to continue to grow strongly in the American market (+ 19 %), while LVMH’s sales stabilised there. France, its original market, nevertheless remains the largest contributor to growth (+ 28 %).
CEO Axel Dumas spoke of a very good Chinese New Year, as health restrictions have finally been lifted in the country, and attributes the growth mainly to customer loyalty. Last week, the brand opened a new production workshop in Normandy. At the same time, it was reported that the French fashion house had reached a market capitalisation of 200 billion euros. The 19,700 employees benefited as well, as they each received a bonus of 4,000 euros at the end of February.
