Unstoppable Hermès: +40% on the 3rd quarter compared to pre-Covid levels

Hermès is unstoppable: +40% on the 3rd quarter compared to pre-Covid levels

Hermès is unstoppable. The French brand beat all other brands on the marketplace. In the 3rd quarter of 2021, the brand did not only record a +31% (at constant rates and yearly basis), but a +40% over the same period of 2019, when the pandemic wasn’t present. The performance was better than UBS’ expectations, which had forecasted +21%. If we look at the first 9 months of the year, the brand’s revenue increased by 57.2% at constant rates compared to the same period of 2020 and +35.2% on 2019’s same period.

Unstoppable Hermès during an atypical year

“The quarter’s performance comes during an atypical year. We continue to make strategic investments and accelerate the creation of jobs – commented Axel Dumas, CEO of Hermès –. The world remains unstable, but our 16 business units and our locations around the world allow us to move forwards with optimism and caution”. Total revenue in the 3rd quarter was 2.367 billion euro. The Maroquinerie-Sellerie division, which generates 45% of revenue, increased sales by 22.2% (+31.7% on 2019). Vêtement et Accessoires (which includes shoes) grew by 39.4% (+48.8% on 2019). Within the Asia-Pacific area, where rivals struggled in the period, recorded a 29.3% increment at constant rates on 2020.

Boutiques in China

With regards to the Asia-Pacific area, Hermès’ CFO, Eric du Halgouët, stated that traffic inside stored has increased, as has the average amount of people making a purchase when visiting the store and the average expense, reported Reuters. The manager points out that no impact has been encountered from the “common prosperity” speech by Xi Jinping.

During the 9 months

During the first 9 months the brand has had a revenue of 6.6 billion euro, up 57.2% at constant rates on 2020 and +35.3% on 2019. Hermès believes that the trend “shows the sustainable nature of its business model and its strive to make continuous improvements on the fields social and environmental responsibility.

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