Hermès took off. During the first quarter of 2021 the luxury brand sold 44% more than the same quarter of 2020, and 33% more than in 2019 Q1, at constant rates. Chinese consumers were the main force behind the brand’s performance. Asia (excluding Japan(, registered a 94% increase in sales (as the 1st quarter of 2020 was deeply affected by Covid-19). The US market also behaved well: +24%. The “Leather Goods & Saddlery” grew by 34%.
“In a still unstable context, our strong sales growth confirms the robustness of our sustainable artisanal model”, commented Axel Dumas, executive president of Hermès. The group’s consolidated revenue during the first quarter amounted to 2.08 billion euro (+44% at constant exchange rates and +38% at current exchange rates). Sales made by the group’s stores increased by 51% compared to 2020 and by 41% compared to 2019. The consensus forecasted was of 1.85 billion euro.
The Leather Goods & Saddlery division
With regards to the performance of the Leather Goods & Saddlery division (+34%), the “ready-to-Wear Accessories”, made of belts and shoes as well, grew by 51% (with watches up 96%). Hermès remains cautious when making forecasts for 2021: “In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates”. Eric du Halgouët, executive VP of Finances, told journalists that the growth of the sales number isn’t tied to the higher prices that were incremented by 1.4% this year, until now. He also stated that online sales increased by 100% or more in all regions and will soon surpass the 1-billion-euro mark, according to what reported by Reuters.