Outstanding performance in sales and results in the first half of 2023. Leather Goods and Saddlery Business Line Outperforms.
Hermès group continues the year 2023 with confidence, thanks to the highly integrated artisanal model, the balanced distribution network, the creativity of collections and the loyalty of clients. In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the luxury Group confirms an ambitious goal for revenue growth at constant exchange rates.
In the dynamic world of luxury fashion, few brands have showcased resilience and growth as remarkable as Hermès.
Thanks to its highly integrated artisanal model, a balanced distribution network, and an unwavering commitment to creativity, Hermès has continued to soar to new heights. The first half of 2023 brought outstanding performance, with the group’s consolidated revenue reaching a staggering €6,698 million, representing an impressive 25% increase at constant exchange rates and 22% at current exchange rates compared to the same period in 2022. Such exceptional results have been possible due to the loyalty of luxury clients and a significant rebound in travel retail, positioning Hermès as one of the most sought-after luxury brands globally.
Hermès Outperforms with a Strong Second Quarter
In the second quarter of 2023, sales amounted to €3,317 million, showing a remarkable 28% increase at constant exchange rates and a commendable 22% at current exchange rates. This upsurge in sales was observed across all business lines and regions, testifying to the brand’s enduring appeal and allure. The solid momentum witnessed by Hermès underscores the success of its artisanal model, which places a premium on the quality of materials, exceptional know-how, and abundant creativity.
The Leather Goods and Saddlery Division Leads the Charge
Among the various business lines, the Leather Goods and Saddlery division recorded exceptional growth, witnessing a remarkable 21% increase. This impressive performance can be attributed to sustained demand and a favorable comparison basis, especially in Greater China during the second quarter. Hermès inaugurated two new leather goods production workshops in Louviers (Normandy) and La Sormonne (Ardennes) in April and May, respectively, to further bolster their production capabilities.
Moreover, the relocation of the leather goods and glove-making workshop in Saint-Junien to a larger site by the Vienne river further showcases Hermès’ commitment to maintaining control over its know-how and artisanal expertise. The brand has ambitious plans for the future, with four additional leather goods production sites scheduled to be rolled out over the next four years in Riom (Puy-de-Dôme) in 2024, L’Isle-d’Espagnac (Charente) in 2025, Loupes (Gironde) in 2026, and Charleville-Mézières (Ardennes) set for 2027. This strategic move not only strengthens Hermès’ local anchoring in France but also creates new job opportunities.
The collection of leather goods has been expanded with captivating new models like InThe-Loop, Maximors, Birkin Picnic, and Hacados. Additionally, the incorporation of hand painting, wickerwork, marquetry, and embroidery enhances the savoir-faire associated with Hermès’ iconic pieces.
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Success Across Other Business Lines
In addition to the remarkable performance of the Leather Goods and Saddlery division, other business lines also contributed significantly to Hermès’ overall success. The Ready-to-Wear and Accessories division achieved impressive growth of 35%, propelled by the continued success of the ready-to-wear collections, fashion accessories, and shoes. The unveiling of the men’s spring-summer 2024 fashion show at the Palais d’Iéna in June received a positive response, further solidifying the brand’s position in the fashion industry.
The Silk and Textiles business line recorded a solid growth rate of 22%, supported by exceptional materials and the expansion of production capacities at the Pierre-Bénite site near Lyon. Furthermore, Perfume and Beauty enjoyed a 10% growth, introducing new additions like the Eau de toilette, Un Jardin à Cythère, and the limited edition of Rouge Hermès. The Watches business line continued its impressive performance with a 24% growth, and the Other Hermès business lines registered a commendable 32% growth, emphasizing the brand’s singular creative strength.
Hermès is confident about its continued growth trajectory, even in the face of economic, geopolitical, and monetary uncertainties worldwide. The French luxury brand remains committed to its long-term development strategy, which is centered around creativity, maintaining control over its know-how, and delivering a unique communication approach.
