A ‘robust’ ride: Hermès’ Q1 ‘odyssey’
Paris-based luxury house Hermès recently announced that its consolidated revenues increased by 44% at constant exchange rates (+38% at current exchange rates) during the first quarter of 2021. Compared to the same period in 2019, revenues grew by 33%.
The brand largely attributed this rise to an “outstanding performance” in the Asian and Japanese markets (Hermès considers its Japan-based sales separately to the rest of Asia), as well as an upturn in the United States and “good resistance” in Europe.
Hermès’ executive chairman, Axel Dumas, commented: “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.”
Significantly, Asia (excluding Japan) saw growth of 94% on the previous year. The brand graded its performance as “excellent” throughout the region, especially noting “highly dynamic” activity in Greater China and sustained activity in South Korea, Thailand, Singapore and Australia.
Japan, for its part, was up 20%, with the house singling out local clients for their continued brand loyalty.
A rise in sales in the United States (+23%) rounded out Hermès’ Q1 growth story, as Europe (excluding France) and France posted declines of 1% and 9%, respectively. Pandemic-related restrictions, including store closures, plus a drop in tourist footfall, were the reasons for this, the brand said. (Hermès again emphasised the loyalty of local customers, particularly via e-commerce, which it described as increasingly important for its sales in the region.)
The luxury house said in a press release that it’s theme for 2021 would be an “odyssey”.
In related brand news, Hermès and Apple have collaborated once again, this time on four smart (yet saddle-stitched) accessories under the Apple AirTag Hermès umbrella: a key ring, bag charm (pictured), luggage tag and travel tag.
All of the objects have been made in either Barénia (one of Hermès’ original saddle leathers) or Swift (formerly known as Gulliver leather) calfskin from the luxury leathergoods house.
Its latest smart designs have been inspired by horseracing token holders from the brand’s archives, Hermès said, but are powered by Apple’s “Find My” network and Bluetooth, which enables the luxury leathergoods articles to have a form of built-in traceability in case of lost luggage or keys, for example.
“I’m very happy because for me it’s a very relevant function and its ancestor is, of course, the leather luggage tag,” Mr Dumas told the Financial Times.
Apple’s chief operations officer, Jeff Williams, added: “Working with Hermès has been a truly synergistic relationship since 2015. I’m proud not only of the products, but also the sharing of expertise along the way.”
Image: Hermès. Credit: Joaquin Laguinge
