In the third quarter, sales grew by 12.9% at constant exchange rates (+5.5% at current exchange rates). The increase continues to be noteworthy both in the group’s stores (+12.9% at constant exchange rates) and in wholesale channels(+12.6% at constant exchange rates).
Activity as at end of September by geographical zone. (Data at comparable exchange rates unless indicated otherwise)
As at end of September 2013, sales grew in all geographical zones:
• Fine momentum continued in non-Japan Asia and in the Americas(+17%);
• France (+12%) and Europe excluding France (+14%) posted an excellent performance;
• Japan confirmed the positive trend seen in the first half of the year (+7%).
In the third quarter, Hermès continued the qualitative development of its distribution network. China and Japan opened two new stores, respectively in Ningbo and Nagoya Mitsukoshi. In the United States, the Beverly Hills store was inaugurated in September after being enlarged and renovated, and after the building’s acquisition in late 2012.
Activity as at end of September by sector (data at comparable exchange rates unless indicated otherwise) Demand for Hermès products continues to be supported by the House’s creative momentum, and the excellence of its know-how.
The Leather goods and Saddlery division (+9%) continued its qualitative growth as well as the progressive development of its production capacities, with the ramp-up of the new manufacturing plants in Isère, Charente and Franche-Comté.
The ready-to-wear and Accessories sector (+20%) posted a remarkable performance and is benefiting from the richness of ready-to-wear, fashion accessories and footwear collections. The Silk and Textiles sector (+13%) posted excellent results thanks to the abundance and density of its collections.
The other Hermès sectors increased sharply (+38%) thanks to the vitality of the jewellery sector and the singular nature of the offerings from Hermès home products.
Significant events in the third quarter
As at end of September, the evolution of currency exchange rates generated a negative impact of €116million on the turnover.
Hermès International did not buy back any shares during the third quarter, other than shares traded under the liquidity contract.
In view of the sales generated over the first nine months, the annual growth objective for the consolidated turnover, at constant exchange rates, could exceed 11%. Depending on exchange rate fluctuations, current operating margin could be close to the historically high level reached in 2012 (32.1%).
During the fourth quarter, Hermès will continue to follow its long-term strategy based on creativity, fantasy, mastering its know-how, developing its distribution network, strengthening its production capacities and securing its sources of supply.
With its annual theme “Chic, le sport !” (A sporting life!), Hermès is clearly focusing on energy and optimism for the end of 2013. Since its origins, the House has been tapping the sports universe to feed its passion for movement, elegance and values of excellence. For Hermès, sport conveys spirit, style and pleasure before all else, and is more than ever expressed in our collections.
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