The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Hermès’ first-quarter sales showed a sharp recovery from the coronavirus crisis. Revenues of €2.1 billion ($2.5 billion) jumped 44 percent year-on-year, and were up 33 percent compared to pre-pandemic levels in early 2019.
Demand for Hermès’ most popular bags has long exceeded demand, and clients typically seize on the opportunity to buy one even in a crisis. That’s helped the company to outperform rivals during previous economic downturns.
Strong growth in other categories including ready-to-wear, shoes, watches and beauty showed that the brand’s classic style is resonating with consumers beyond its flagship bags. Sales in the division selling homewares and jewellery nearly doubled.
The news follows strong numbers at LVMH last week, where sales in the key fashion and leather division were up 37 percent over 2019. Gucci-owner Kering also rebounded, albeit less dramatically, with sales edging up 5.5 percent above pre-pandemic levels.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.