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Global | Hermés Sales in the First Half of 2018: Excellent Performance in Asia Pacific and North America

Aug 21, 2018.Xueqing DingTokyo, JP
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Hermés recently announced its financial report for the first half of 2018. As of June, the Group's consolidated sales amounted to 2.853 billion euros ($US 3.29 trillion*) , an increase of 11% at the exchange rates (excluding the impact of exchange rates) and a 5% increase at the current rates. Total sales in all regions of the world excluding exchange rate increase, with the Asia Pacific region showed the most significant (excluding Japan) growth of 15%, with outstanding performances in China in the first half of this year -- opening new stores in Landmark Prince’s and Changsha. Japan's region grew by 7% and the US region grew by 12%. It’s worth noting that in May this year, a new store was opened in Palo Alto, the core area of ​​Silicon Valley in the high-tech park. Recently, it seems that all the luxury brands are developing new customers in the park as a new strategy. The European region (excluding France) grew by 7% and the French region by 8%.

According to product category, all products had a steady growth which promoted the overall performance of the first half year. Excluding the impact of the exchange rate, the total sales of leather goods and harnesses increased by 8%. The demand for classic styles such as Roulis, Lindy and Cinhetic is still high and the production capacity in various regions continues to increase. The manufacturing facility in l’Allan opened in April this year, and the craftsman production capacity in the Franche-Comté region construction is completing. The production bases in Guyenne and Montereau will also be completed in 2020.

Sales of men's and women's ready-to-wear and accessories divisions increased by 17%, while sales of silk and textiles increased by 7%. Perfume sales increased by 15%, and watch sales increased by 9%. It’s noteworthy that sales in other integrated sectors have grown by 24%, including jewellery, lifestyle, art, and tableware.

Although global economic and political instability continues, the overall financial situation in  sales for the entire group remained positive despite the exchange rates. Hermès' 2018 slogan "Let's Play!", which means that in addition to entertainment, the process of their creative and innovative sensitivity remains crucial. Hermès, with its unique business model, has a stable and good performance during the second half of the year.

*1 EUR = 1.15285 USD