Sharp acceleration in growth at Hermès
Far from being the set of results set to signal the start a slowdown in sales France’s Hermès Group's has reported a sharp acceleration in sales for the second half of 2007 (up 16.2% at constant exchange rates).
Sales for the year reached €1.625 billion, up 12.5% at constant exchange rates — boosted by the opening or renovation of over 40 stores during the year —which was reduced to 7.3% at current exchange rates due to the strong euro and weak dollar.
In the group’s native France business remained “robust”, reporting an 11% increase in sales, while other European countries posted an impressive 17% increase and the Americas posted sales growth of 14%. The picture was less positive in Japan, which saw sales edge only 3% higher, although Asia as a whole reported significant gains of 15%, fuelled by expansion in China.
The companies Leather Goods and Saddlery segment delivered strong growth of 8%, driven by leather bags which improved by 16%, while watch sales were almost static with only 1% growth.
As with other luxury groups, Hermès remains confident of yet more increases in 2008 and plans to open or renovate a further 40 stores this year in the USA and in China and will open its first store in New Delhi, India.
