The French luxury goods firm posted a quarterly revenue of €3.81 billion, up 17% at constant exchange rates and 13% at current exchange rates. The company noted solid activity in all geographical areas.
“The solid sales growth in the first quarter 2024 reflects the loyalty of our clients worldwide, the strength of the group’s artisanal model and the desirability of our creations in a more complex environment,” said Axel Dumas, Executive Chairman of Hermès.
All the geographical areas posted double-digit growth, with Asia excluding Japan at +14%. The company highlighted that there was softer traffic in Greater China following the Chinese New Year.
Growth in Japan was +25%, boosted by the loyalty of local customers, while the Americas posted a +12% increase thanks to the momentum in the United States. Europe, excluding France, grew by +15%, with France at +14%.
Hermes also said there was strong demand in the leather goods and saddlery métier unit, which saw a +20% rise.
Looking ahead, Hermes said it has moved into 2024 with confidence. In the medium term, it “confirms an ambitious goal for revenue growth at constant exchange rates.”
Reacting to the report, analysts at Morgan Stanley said it was a “very solid start to the year from Hermès.”
“From a category standpoint, the beat was driven by leather goods, up a very strong +20% (+15% expected by consensus) – ahead of full year guidance for the category (indicated up c.+7% in volume and c.+8% in price),” said the bank. “From a geographic standpoint, the beat came from Europe and Japan, with the Americas and the rest of Asia more or less in line with market expectations.”
“Overall, today’s statement confirms that Hermès continues to significantly outperform the rest of the personal luxury goods sector and it should be taken well by the market.