Hermès Sales Soar 44% in the first quarter

Hermès Sales Soar 44% in the first quarter

Hermès International reported a surge in sales as the Asian market recovers from the pandemic. In the first quarter of 2021, revenue soared 44% at constant exchange rates. The maker of the iconic Birkin bag said in a statement “, in a still unstable context, our strong sales growth confirms the robustness of our sustainable artisanal model and the desirability of our collections to our customers all over the world.”

The luxury-goods company’s unique business model and its long-term development strategy helped the French brand’s pricing power. Hermès reported an excellent performance of 94% in Asia excluding Japan. In Japan sales skyrocket 20%. Additionally, the company opened a new store in Tokyo, thanks to the accelerating sales in the first quarter.

At the end of March, all the business lines returned to growth, with a strong dynamic in the Ready-to-Wear (+51%) and Accessories division, Watches (+96%) and Other Hermès Business Lines (+93%). While the Covid-19 epidemic makes economic impacts difficult to assess, Hermès confirmed an “ambitious goal for revenue growth” in the medium-term.

Hermès shares rose 18.92% this year to a record of 1.065 euros. The stock surpassed 1,000 euros for the first time. The dynamic sales growth and the strong operating margin of 32.4% reflect the customers’ loyalty and brand’s mystique.

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