A remarkable performance in the Greater China market, helped Hermes International increase its third quarter revenues by 31.5 percent year-on-year.
As per a Women’s Wear Daily report, the French luxury firm’s revenues in the three months to September 30 increased by 40.3 per cent to €2.37 billion compared with 2019, considered a more reliable benchmark due to the disruption caused by the coronavirus pandemic last year.
This represented an increase of 31.2 percent versus 2020, beating a consensus of analyst estimates, which had called for a 23.8 percent rise in like-for-like sales. The better-than-expected growth rates confirmed Hermès as one of the top-performing luxury brands this year.
The group said that despite a high comparison base in the fourth quarter, it is approaching the end of the year with confidence.
However, it cautioned that that its second-half operating profit margin could be much lower than the 40.7 percent recorded in the first six months of the year, due to foreign exchange headwinds, higher employee costs and a lower contribution from leather goods, as per a Barclays report.
The group’s activity in the third quarter increased by 23.4 percent at constant exchange rates in Asia thanks to the strong performance in Greater China and other countries in the region, despite new restrictions in Australia, Thailand and Malaysia.
Its sales in the Americas jumped by 48.4 percent , while France recorded a 46.7 percent increase. Sales in the rest of Europe increased by 36.4 percent.