Luxury goods group Hermès reported strong growth across all geographic regions, with an acceleration in the Americas and a recovery in Europe.
Hermès generated a net profit of 1.174 billion euros ($1.38 billion) in the first half of the year, three times more than in the Covid-19 crisis-ridden year of 2020 and up 56% from the previous year before the pandemic.
The group generated sales of 4.235 billion euros ($5 billion), a 70% increase over 2020. Compared to 2019, the increase was 29 %. Revenues jumped to 41% of operating margin.
Axel Dumas, the group’s manager, said in a statement, “The results for this first half are exceptional. But this performance also reflects the dynamics and resilience of our model. (…) We remain motivated to face uncertainty while living our values,” he said.
Despite economic, geopolitical, and monetary uncertainties, in the medium term, the Group confirms an “ambitious objective of constant growth in sales” and continues its long-term development strategy.
Over the same period in 2020, sales increased 119%.
The group reports that all geographical areas experienced strong growth, with an acceleration in the Americas and a recovery in Europe. Based on comparable exchange rates, a benchmark for the group, sales in the Americas increased by 115% over the year and by 25% over two years.
Sales in Asia excluding Japan continue to grow (+70% over two years), but also in Japan with a 22% increase over 2019.
All Hermès business sectors have experienced positive growth during the last two years. Clothing & Accessories (+40%), Watches (+80%) and Other Hermès Sectors (Jewelry & Household Products) have nearly doubled their sales over the last two years.
Hermès’ core business, Leather Goods-Saddlery, has experienced 25% growth over last year.
After the leather goods workshop in Montereau (Seine-et- Marne) inaugurated in June, the brand will further increase its production capacity with the opening of the Guyenne (Gironde) leather goods workshop in September, the Louviers (Eure) leather goods workshop in 2022, the new site in the Ardennes in 2023, and the second leather goods workshop in Auvergne for 2024.