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French luxury brand Hermes' revenues ascend 25% in H1 FY23

28 Jul '23

2 min read

Pic: Bright097 / Shutterstock.com

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Hermes' H1 FY23 revenues rose 25 per cent YoY to €6,698 million, with a net income of €2,226 million.
Recurring operating income surged 28 per cent, driving operating profitability to 44 per cent.
Q2 FY23 saw robust sales, with all regions posting more than 20 per cent growth.
Leather goods led the rise in business lines, with a 21 per cent YoY increase.

France-based luxury fashion brand Hermes has reported consolidated revenues of €6,698 million in the first half of fiscal 2023 (H1 FY23), marking an uptick of 25 per cent at constant exchange rates and 22 per cent at current exchange rates year-on-year (YoY). Net income for the group reached €2,226 million, accounting for 33 per cent of sales, while the gross margin rose by 1.2 points to 72 per cent compared to the same period last year.

Recurring operating income surged 28 per cent to reach €2,947 million in H1 FY23, up from €2,304 million in H1 FY22, propelling the operating profitability to 44 per cent, a two-percentage-point leap from 42 per cent in H1 FY22. The group also reported a 36 per cent increase in its consolidated net profit, standing at €2,226 million, up from €1,641 million in H1 FY22, largely due to improved cash remuneration conditions, Hermes said in a media release.

In Q2 FY23, Hermes enjoyed a strong sales momentum, with revenues hitting €3,317 million, a rise of 28 per cent at constant exchange rates and 22 per cent at current exchange rates across all business lines and regions.

Region-wise, every area reported vigorous growth of 20 per cent or above in H1 FY23, with Asia excluding Japan leading the pack with a 28 per cent surge. Sales in group stores rose by 25 per cent at constant exchange rates while wholesale activities also saw a 26 per cent increase, owing to a rebound in travel retail.

By business lines, leather goods and saddlery led the way with a 21 per cent YoY increase, followed by the ready-to-wear and accessories division growing by 35 per cent, and the silk and textiles business line growing by 22 per cent.

New stores were inaugurated in Beijing, Fukuoka Hakata, Aspen, Colorado, and Naples in the Gulf of Mexico. In Europe, the Hamburg store was reopened after renovation and expansion.

“The 2023 first half results reflect the strength of the pillars of the artisanal model of the house: quality of materials, exceptional know-how and abundant creativity. To support this growth, we continue to invest in our production capacities, in the expansion of our network, while accelerating job creation and training in all of the group’s metiers,” said Axel Dumas, Executive Chairman of Hermes.

Fibre2Fashion News Desk (DP)

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