Hermès International sales jumped in the first quarter as consumers spent more on the company’s ready-to-wear clothing and leather bags.

Revenue rose 27 percent at constant exchange rates to €2.77 billion ($3.02 billion) in the first three months of the year, the Birkin bag maker said in a statement Thursday. Analysts had expected a gain of 15 percent. The standout performer was the ready-to-wear line which grew 44 percent, more than double estimates. Growth at its biggest leather goods and saddlery unit also beat expectations.

To boost production, Hermès announced last month plans to open two new leather goods workshops in France for 2025 and 2026, which will create 500 jobs. That’s on top of three other sites scheduled to open in the next 3 years to address supply constraints.

The Americas, Europe and France led the gains as some of these geographies had particularly tough quarters a year ago with many virus restrictions still in place.

Investors and analysts will likely pay close attention to comments on the lockdown situation in China when management speaks on a call later Thursday. “Since mid-March, Greater China has been penalised by new health restrictions,” the company said.

As of Thursday, three of the company’s 26 stores in China were closed due to lockdowns. The three stores are in Shanghai, Chief Financial Officer Eric du Halgouet told reporters in a call.

By Angelina Rascouet

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