Sales up 31% in third quarter, Hermès

10 Nov '10

4 min read

HERMES announced third quarter financial report as at end of September 2010.

During the third quarter, sales growth was 20% at constant exchange rates and 31% at current exchange rates, driven by robust momentum generated by the group's own stores. The recovery in wholesale revenues initiated in the first half was confirmed and all Hermès business sectors delivered growth.

Sales for the first nine months amounted to €1,664.8 million. They were up 20% at constant exchange rates and up 25% at current exchange rates.

Sales for the first nine months by sector and region
In Europe, sales rose by 19% in the nine months to 30 September, with a 26% surge in France and persistently solid momentum in the rest of Europe (up 19%) during the third quarter.

In the Americas, sales advanced by 23%, due primarily to the success of the first Hermès store dedicated to men on Madison Avenue in New York.

In non-Japan Asia (up 41%), growth was propelled by a sharp upturn in sales in the Group's own stores across all sectors and by continued expansion of the distribution network, with three new branches opened in China since the beginning of the year. In Japan, sales dipped by 1%.

Silks & Textiles turned in a handsome performance. Sales advanced by 20% over the first nine months, after an excellent third quarter, underpinned by the success of the new women's silk collections, which were enhanced by exceptional new products in cashmere and silk.

Leather Goods and Saddlery remained on a very high growth trend (up 22%), fuelled by small leather accessories and high demand for leather bags. Sales in this sector were buoyed by the growing sucess of new bags in addition to the flagship models.

The Ready-to-Wear and Fashion Accessories division delivered a 17% rise, due primarily to fashion accessories.

In Perfumes (up 25% over the first nine months), sales were boosted by the successful launch of Voyage d'Hermès during the month of March and by persistently strong demand for Terre d'Hermès.

In Watches, the strong recovery initiated during the first half continued, with growth of 34%, while the Tableware sector showed improvement (up 7 %).

Significant events during the third quarter
There were no significant events that produced a material impact on the Hermès Group's activity during the third quarter of 2010.

During the first nine months, changes in exchange rates, particularly for the Japanese yen, US dollar and currencies linked to the dollar against the euro, generated a positive impact of €73 million on the Group's sales. During the third quarter, when the major currencies weakened against the euro, the currency impact was more pronounced.

The Hermès Group did not buy back any shares during the first nine months of 2010, other than shares traded under the liquidity contract.

On 23 October 2010, the LVMH group announced that it held 17,1% of Hermès International's share capital. No legal or statutory ownership threshold disclosures had been filed prior to this announcement.

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