Leaving far behind Lvmh, which posted weak growth, and above all Kering, which fell sharply, Hermès posted a fine performance in the first three months of 2024, with growth in all regions of the world and in all its categories. Japan and Leather Goods-Saddlery outperformed.
The Hermès model continues to weather turbulence with grace…
While Kering has just announced a 10% fall in sales for the first quarter of 2024, and Lvmh was content to report organic growth of +3% (-2% in published figures), the saddler has the luxury of double-digit growth over the same period.
Over the first three months of the year, the Maison de la rue du Faubourg Saint Honoré posted sales up 12.6% year-on-year on a reported basis (+17% at constant exchange rates) to 3.81 billion euros. This outperformed the Factset consensus, which had forecast average sales of 3.70 billion euros…
In a press release, Hermès CEO Axel Dumas commented that “solid sales growth in the first quarter of 2024 testifies to the loyalty of our customers around the world, the strength of the Group’s artisanal model and the desirability of our creations in a more complex environment”.
Antoine Fraysse-Soulier, Head of Market Analysis at eToro, comments: “Once again, the Group has beaten the odds by reporting sales ahead of expectations, against the trend of players who reported below expectations. Moreover, unlike its peers, Hermès is not suffering in Asia, as revenues rose by 14%. In fact, double-digit growth was recorded in all geographic zones. (…/…) These excellent results can be explained by the desirability of products, despite rising prices, and by the loyalty of customers, who make frequent repeat purchases. Hermès customers are not sensitive to economic conditions or inflation“.
The analyst notes, however, that Hermès shares fell by -1.2% on Thursday April 25, in the wake of this quarterly publication, as investors did not welcome these very good figures.
Double-digit growth in all regions
In fact, Hermès is a global success story, with double-digit growth in every region!
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Featured Photo: Hermès store in Nanjing © Hermès
